Cost of housing on the rise

The price of property has continued to rise, leaving many unable to clamber onto the housing ladder.

According to the latest LSL Acadata Index, property prices in England and Wales increased by £2,500 in February, the largest monthly rise for 21 months taking the average price to £257,951.

Its figures showed that on a monthly basis prices have risen one per cent and on an annual basis costs have shot up by six per cent.

This trend is likely to continue according to the index, and house price growth is expected this year.

Commenting on the findings, David Newnes, spokesman for LSL Property, said: "As with much of the country the crux of issue that continues to push prices higher is the shortage of supply. With buyers’ appetite for bricks and mortar undiminished, unless we see a sudden wave of properties hitting the market this will become a recurring problem both in London and elsewhere."

He urged chancellor George Osborne to do more to increase the supply of housing. The latest index is just one of a long line of reports which has highlighted the increasing costs of purchasing a house.

Last week, a survey by Halifax showed that the price of buying a home in the three months to February was 2.1 per cent higher than in the three months to November.

Its figures showed that the annual rate of price increase also rose again, with prices in the three months to February 7.9 per cent higher than in the same period last year.

Peter Williams, housing market specialist and chairman of Acadata, said that there has been great acceleration in house prices over the last three months.

He added: "This percentage increase is 3.2 per cent above January’s 12 month RPI of 2.8 per cent, which gives credence to the Office for Budget Responsibility’s (OBR) forecast that house prices will remain ahead of inflation in 2014."

Published 20th March, 2014

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