House Prices Rise by 6%

House prices for the month of July rose by six per cent, with prices in England doubling in four years to an average of over £200,000 a home. Official government figures published yesterday indicate that growth in house prices is now at its fastest rate in 14 months, and increases in London, Scotland, Wales and Northern Ireland are exceeding the national six per cent average.

The report from the Department for Communities and Local Government (DCLG) shows that the average UK house cost £194,454 in July, compared to £191,016 for the month before. While prices in London rose by 7.1 per cent in the month, while the annual figure in Northern Ireland stands at 18.3 per cent, with the average property selling for £158,104. A similar picture is emerging across all regions of the country.

The average English home now costs £202,660, double what it did in the first six months of 2002. In Wales the average house now sells for £156,205, while in Scotland the figure is £140,460. While the Bank of England's monetary policy committee seeks to slow inflation, with a further rate rise from 4.75 per cent predicted for October or November, first time buyers are struggling with the rising cost of the average first home.

Milan Khatri of the Royal Institution of Chartered Surveyors said: "House price rises for first-time buyer properties fell back in July, but at 5.6 per cent is still running above average wage rises, increasing difficulties for would-be buyers."