Average UK house price exceeds £200,000 – Bright – Mortgages St Neots

The average UK house price has now exceeded the £200,000 mark for the first time, but a typical home in the south of England costs over double of one in the north, according to Nationwide Building Society.

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Property values rose 0.8% month-on-month in March across the UK, taking the typical price of a home to £200,251. However, the price gap between the average house price in the south of England and that in the north has extended to almost £163,000.

The average home located in the south, including the south-east, south-west, East Anglia and London, costs around £313,000, whereas a typical home in the north, which includes the north-west, north-east, Yorkshire and Humberside as well as the Midlands, now costs around £150,000.

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Across the UK, generally, the year-on-year rate of house price growth accelerated to 5.7%, the fastest pace since February 2015. A 3% stamp duty surcharge for buy-to-let investors, which cam into force on the 1st April, will have had an impact on the prices.

The National Association of Estate Agents (NAEA) has reported seeing a “bottleneck” of investors trying to beat the 3% increase in previous stamp duty rates.

Nationwide said that the outer metropolitan London area was the strongest-performing region during the first quarter of this year, with house prices rising by 12.2% on this time last year to reach an average of £344,371.

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The north of England and Scotland were the only areas in the UK where property value dipped year on year, with falls of 1.1% and 0.2% respectively. The average house price in Scotland is now £139.911.

Elsewhere, in Wales, prices were up 1.7% compared to last year, now at £141, 525 on average. In Northern Ireland, prices went up 1.8% with the average house price now at £123,25.

In East Anglia and the south-west, property values were up by over 5%, while in Yorkshire and Humberside they saw a smaller increase of just under 2%, and in the north-west they increased by just 0.5%.

Nationwide’s chief economist, Robert Gardner, said that the pace of house growth may start to moderate now that the changes on stamp duty have come into force.

He also added: “It is possible that the recent pattern of strong employment growth, rising real earnings, low borrowing costs and constrained supply will keep the demand/supply balance tilted in favour of sellers and maintain pressure on price growth in the quarters ahead.”

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