UK House Prices Rose by 8% in 2014

House prices in the UK rose by just under 8% in 2014, adding £14,600 to the cost of the average property, according to the Halifax.

A quarterly price increase of 0.3% brought annual house price inflation to 7.8% in December and the average property price to £188,858, the UK’s largest mortgage lender said.

This was considerably down on increases earlier in the year, with annual house price inflation hitting a peak of 10.2% in July.

Martin Ellis, housing economist at the bank, said that the combination of rising prices, low earnings growth and speculation about an interest rate rise had led to a drop in the number of sales in the last few months of 2014, which had slowed further growth.

He said that he expected house price growth to continue in 2015 but by a far more modest 3% to 5%.

“Housing demand should continue to be supported by a growing economy, rising employment levels, still low mortgage rates and the first gain in ‘real’ earnings for several years,” he said.

via The Guardian

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