House prices up by 10.9%

House price inflation picked up speed in January with the annual rate of increase recorded at 10.9 per cent, official figures showed today.

An increase of 2.1 per cent in the cost of property purchased in the month pushed the average price of a UK house up to £205,286.

Government statistics also revealed that for the three months to January, annual house price inflation was set at 9.9 per cent for the UK and 11.6 per cent for London.

All four home countries registered an increase in house price inflation in January, figures showed. Northern Ireland continued to see the quickest pace, with year-on-year increases recorded at 42.5 per cent in the month. The highest inflation rate in England was recorded in London.

Annual change in the capital rose to 13.2 per cent in January, up from 11.8 per cent in December. The typical cost of a home in London is now £305,248, compared to an English average of £212,845. Northern Ireland saw the value of homes almost hit the £200,000 mark in January following recent high inflation. Average prices in Wales and Scotland were recorded at £162,610 and £150,509 respectively, figures showed.

First-time buyers across the UK continue to be hit by rising property prices, the latest research found. Annual price inflation rate for maiden buyers rose from 9.4 per cent in December to 10.6 per cent. The value of homes being bought by first-time buyers increased by 1.9 per cent in January, putting the typical cost up to £158,097