House prices to rise 3% in 2012, Assetz
New data reveals that latest house price increase is “highest average recorded” in almost four years.
Average UK house prices have increased 3 per cent since the end of last year with average prices now standing at £202,017, new data from Assetz has showed.
This is an increase of £5,864 since December and represents the highest average house price recorded by House price watch since July 2008, said the property investment firm.
House Price Watch is an analysis of house price data from Office for National Stastics, LSL Acadametrics, Halifax, Nationwide and Rightmove.
The annualised average rate of growth now stands at 10.3 per cent while the three- and six-month annualised rates of growth are 12.2 per cent and 3.7 per cent respectively.
Stuart Law, chief executive of Assetz, said: “Whilst there were a number of factors driving the market upwards, such as a rush to complete purchases ahead of the stamp duty holiday being withdrawn, there were also a number of negative factors, such as rising mortgage rates, that failed to quell the rise in transactions.
“In fact, HMRC figures showed a large surge in completed sales in March, up 17 per cent in a month as house buying demand continued to grow.”
Mortgage lending was also up 30 per cent month on month in February, Assetz said.
Mr Law said: “Nonetheless we still have the ‘new normal’ level of transactions of only around half of those in 2007 and we have no expectation that transaction levels will reach those peaks again for many, many years as we move towards becoming a rental society in the UK.
“We feel that our estimate of a 3 per cent rise in UK house prices for the whole year of 2012, which was at the top of the range of forecasts, could be comfortably achieved, regardless of the initial version of the GDP figures released indicating that the economy is falling slightly again.”