A simples guide

Take a look at the house price index report

The House Price Index report has revealed that house prices in the UK have increased by an average of 6.1% over the last year.

So if you’re thinking of getting a foot on the property ladder, or you’re considering a Buy to Let property, now might be the time to head over to our price comparison tool to find the best deal on a mortgage.

House prices are on the rise generally, but of course the property market is unpredictable. So while past behaviour is an indicator of future performance, there is always an element of chance when you come to buy a house. 

London prices still going strong

House prices actually dropped 0.2% from January to February to an average price of £190,275. London bucked that trend with a price rise of 0.6% in the last month and a 13.5% rise year-on-year to give a new average of £530, 368.

That’s a frightening number, but it is skewed by the increasingly expensive top end properties that continue to attract foreign investment to the capital. There’s no doubt that the South East is still the most buoyant part of the country, too, with the region outside of London increasing in price by 10.9% and a 0.7% rise from January to February.

house price index london

London boroughs spring a surprise

The best performing areas of London in terms of price increases, though, might come as a surprise. Hillingdon rose by 17.1% while the traditional house price stronghold of Hammersmith and Fulham experienced a 2.2% increase from January to February. Westminster, home to some of the most expensive houses in the world, rose by just 6.7% over the course of the last year, but then the average price is still £1,057,034.

London house price index

Nowhere rose to prominence faster than Slough, however, as the Berkshire town’s house prices rose by a massive 19% year-on-year and 2.1% from January to February alone, while the Welsh county of Blaenau Gwent saw an average rise of 9.4% in the same period.

In contrast, the North East has actually seen a fall in prices. The average house prices in the region have now slipped beneath £100,000 to £97,582. Wales remained almost static with a 0.1% decline in the last month and a 1.2% rise in the last year. Scotland, Cornwall and Angelsey have all seen minor growth.

Barnsley enjoyed a monthly change of 3.2%, which is a disproportionate amount of its annual increase of 5.2% whilst Birmingham has increased by 5.7%. Knowsley, Merseyside, was the highest scoring metropolis outside London with an 8.1% increase in the house prices. 

Semi-detached the big winner?

Semi-detached houses rose the most across the nation, with a 6.4% rise since February 2015, increasing to an average price of £180,191. Terraced houses managed just a 5.8% rise in the same period from £135,232 to £143,060. Flats and maisonettes, meanwhile, rose from £172,981 to £183,754 – a 6.2% rise.

It doesn’t matter what the prices are if they are just not selling, of course, and the City of London, Rutland and the Isle of Anglesey are just a few areas where demand has slumped. Wales is suffering in the housing market, despite a spike in prices in some places. It seems the demand just isn’t there right now.

£1 Million+ homes on the rise

With a general increase in prices, it isn’t a big surprise that there was a 2% rise in £1 million+ property sales in the last year, with 1077 homes finding new owners. There were fewer repossessions, too, with 406 per month compared to 771 per month last year.

So the property market is still in a state of flux, but it is generally on the up. So if you’re thinking of getting in to the property market then you should act fast and take advantage of our price comparison service to make sure you get the best possible mortgage and home insurance.

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