Official: house prices up an annual 6.2% in January

The latest house price index from the Department for Communities and Local Government claims that in January, prices were up 6.2% year-on-year, having risen 2.2% since December.

The analysis puts the value of the average UK home at £207,159 in January, having shown an increase of 4.8% over three months.

The quarterly figure compares with a smaller rise of 2.3% for the three months ending October 2009.

Regionally, January annual average rises were as follows: England 6.6% (to £214,003); Scotland 7.1% (to £165,766) and Wales 1.3% (to £154,255).

However homeowners in Northern Ireland faced a loss of 13.7% over the previous twelve months, with the average property price at £170,215

First-time buyers typically paid 8.9% more for their homes at the start of the year than in January 2009, at £149,924, while the average house price paid by former owner occupiers rose 5.2% over 12 months, to £242,404.

In related news, FindaProperty.com has reported that in March, the average first home is being marketed at £154,720, compared with £154,036 in February.

According to the website, slightly more generous lending criteria has reduced the average deposit for those new to property ownership to a mere £51,700, down from £55,200 in February and over £70,300 in December 2008.

Discuss this in the Finance Markets forums

Story link: Official: house prices up an annual 6.2% in January