Vast Regional Differences in house prices as London surges ahead, says ONS
The Office for National Statistics stated that the London property market had seen price rises of 11.6% in November 2013.
London’s property market contrasts with a 3.1% rise in England compared with an inflation rate of 2.1%.
All 13 British regions saw house price inflation rises in the final three months of 2013.
However regional differences are marked and Nationwide states that Manchester, not London was the city experiencing the highest rate of house inflation, with prices rises running at 21% in some parts.
One advantage of rising house prices in London for homeowners is remortgage buyers can now release capital for home improvements.
In contrast, first time buyers are under pressure as the continued rise in house prices means they would require a higher deposit, larger mortgage or higher earnings to purchase their first home.
Prices rising faster than cost of living
Annual house price growth rose faster than the cost of living in November, even if London is removed from the calculations, official figures show.Equity release has allowed older home movers to buy more expensive properties where there is a shortfall in equity with the balance as a lifetime mortgage.
Figures from the Office for National Statistics (ONS) exposed wide discrepancies for growth in property values across the country, based on mortgage completions.
The table from the ONS is for November 2013 as follows:
| Area | Change | Value |
|---|---|---|
| London | 11.6% | £441,000 |
| South East | 4.5% | £307,000 |
| East | 4.1% | £259,000 |
| England | 5.6% | £258,000 |
| UK | 5.4% | £248,000 |
| South West | 3.1% | £234,000 |
| West Midlands | 4.4% | £188,000 |
| East Midlands | 2.0% | £176,000 |
| Scoltand | 2.5% | £184,000 |
| Yorks and the Humber | 3.2% | £170,000 |
| North West | 0.6% | £163,000 |
| Wales | 5.4% | £167,000 |
| Northern Ireland | 3.3% | £131,000 |
| North East | 4.2% | £148,000 |
Data from the ONS is arguably more comprehensive than the Halifax and Nationwide which are based on their own mortgage data.
Higher property values for older homeowners allows the equity release mortgage buyer to access wealth to consolidate debt,, pay for care at home or even reduce inheritance tax owed by your beneficiaries.
What are your next steps?
Talk to our London City Mortgage advisers if you are an older homeowner releasing equity from your property, we can recommend the lifetime mortgage to access wealth to consolidate debt, home improvements or gifting to a family member.Learn more by using the equity release calculator, property value tracker chart and mortgage cost calculator. Start with a free mortgage quote or call us and we can take your details.
At LCM our mortgage brokers can provide advice if you are a first time buyer, moving home, want to remortgage your existing home to a new cost effective mortgage deal or are a buy-to-let investor.
Use your dashboard to access online mortgage quotes, money off vouchers and start your mortgage application online 24/7 on desktop, tablet or smartphone.
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These are examples of mortgage products we can approach with many more offering interest rates and flexibility to meet your needs.
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Equity Release may involve a Lifetime Mortgage or a Home Reversion Scheme. To understand the features and risks, please ask for a personalised illustration. Equity Release may affect your entitlement to means tested state benefits and will impact on the size of your estate. For Equity Release London City Mortgages charge a fixed fee upon completion of £695. For Mortgages a fixed fee is charged on application. Typically this is from £295 up to £495 for the services selected.
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