House prices in England and Wales hit a record high in June but experts warn that it is London that is driving the increase and sales outside the South East are still low. The average house price in June was £232,801, up 0.2% on the previous month and up 2.5% on a year ago. It means that average prices have increased by £5,664 in the past 12 months, according to the LSL/Acadametrics index.

David Newnes, director of LSL Property Services which own Your Move and Reeds Rains estate agents, said that it has taken almost five years, but the housing market finally looks set on the road to recovery from the 2008 downturn. ‘House prices have never been higher. They reached a record high in May and set another record in June. The catalyst has been a significant improvement in mortgage availability which is thawing the frozen first time buyer market. Lenders are more willing to lend to high LTV borrowers, and this spate of activity at the bottom end of the market is reverberating all the way up the housing chain. The plethora of attractive mortgage deals on offer is working wonders and wider pools of buyers are flocking to the market,’ he explained.

 

He also pointed out that house prices have risen significantly in June 2013.Foreign buyers who are boosting property price growth in the capital. Money is pouring into prime areas from cash buyers and international investors looking to store their wealth in bricks and mortar. This growing demand for properties in central London areas is proving to be an important contributor to the 7.9% growth in average prices in London.

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