House prices in England and Wales were up 6.7 per cent in April, compared with the same month last year, the latest research from the Land Registry has revealed.
The figure was also an increase compared to the data for March, which reflected a 5.6 per cent yearly house price rise.
Price increases in London were consistently above the average, with a 17 per cent jump in the year, the Land Registry found. This is in stark contrast with the 2.9 per cent rise in the north east of England.
David Brown, commercial director of LSL Property Services, comments, “The housing recovery is driving on unabated. But even better, price growth is down to a broadening of the recovery to regions outside the South East.
“After rigorous new rules on the affordability of mortgages, lenders are aware of their responsibilities when it comes to ensuring a stable recovery. And the property market has maintained considerable momentum. Such solidity is encouraging for the housing market’s longer-term prospects – because developers rely on stability.
“So as long as prices can grow in tandem with house building, and household earnings show real signs of life, this could be the start of a positive feedback loop for the housing market. The rental market is already becoming more affordable.
Meanwhile, Roger Harding, director of communications, policy and campaigns at housing charity Shelter, said: “These figures show that house prices are spiralling out of control, with each rise forcing more people to wave goodbye to their dreams of a home of their own.
“The result is a generation left with no choice but to resign themselves to years of expensive and unstable private renting, no matter how hard they work or save.
“With the market reaching boiling point, the only way to bring house prices back within reach is to fill the gap between the homes we have and the homes we need. Big house builders can’t do this on their own: the government has to make sure that small local house builders can find the finance and land they need to help build enough good quality homes to meet demand.
“We know that building the homes we need is possible. Politicians of all parties now need to make stable homes for the next generation a top priority.”
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