Property prices in the UK continue to rise

Property prices in the UK are continuing to rise, particularly in London where housing costs have traditionally outpaced the rest of the UK.

According to a report published by Zoopla, the average British house price has increased by 4.4 per cent this year.

Its figures showed that the average British home has risen by £10,329 during 2013. This was in part because of the effect of Help to Buy and low interest rates, which in turn boosted demand.

The greatest increase was seen in the capital, where average property values rose by ten per cent to £46,398, since this time last year.

This was closely followed by Scotland, which saw increases of 6.85 per cent over the year.

Lawrence Hall, spokesman for Zoopla said confidence among property investors is on the rise.

He added: "This year saw a host of new government initiatives that are now helping the property market to gain stability and set the foundations for a sustainable recovery. As a result 2013 has witnessed property price growth across most of the country and particularly at the entry level of the market. 

"With confidence in the market increasing, 2014 could see further price growth as transaction levels pick up, construction continues and more property comes to the market."

The research highlighted the fact that property prices have risen in ten out of the 11 regions across Britain over the year.

Essentially what this means is that for many people looking to move house in London, being able to afford a mortgage will simply be out of reach.

This was highlighted further by the fact that a report published by property group Savills showed there were 4.3 million households in the private rented sector in the UK in 2011 and this is expected to grow by a million over the next five years.

Published 12th December, 2013

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