Recent surveys and research are reporting that the average house prices across the United Kingdom are exceed 2007 levels, although some industry analysts are suggesting that the continued growth may slow with new mortgage rules adding a dampener.
House prices rose by 1% in June, and are now 11.8% higher on an annual basis but the latest house price sentiment index implies that there is an easing of expectations for future price growth.
The value of an average home has risen by £20,000 or 11.8% over the last year. Data from Nationwide shows that the value of an average property in the UK is now £188,903, above the pre-crisis peak levels seen in 2007.
However the large regional variations must be taken in to account when considering the pace of growth, with London prices up 26% over the year while property in Yorkshire and Humberside has risen in value by 7% over the same period, Knight Frank says in its latest UK residential update report.
The deputy governor of the Bank of England, has stated that this rapid rise is one of the biggest threats to the UK economy. He said that prices rising faster than earnings led to the risk of rising consumer debt which the bank sees as a threat to stability.
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