08/03/2004 12:26
The housing market gained further strength in January, according to the latest government figures.
Annual prices inflation hit 9.7% in January, the Office of the Deputy Prime Minister said, up from 8.3% the previous month.
The acceleration echoes the findings of other property surveys by the major mortgage lenders.
However, the other surveys have reported prices rising at a much faster rate than the government findings.
The latest figures from the Halifax and Nationwide show annual property price inflation rose by between 17-18% in February.
Onwards and upwards
The average UK house cost £163,645 in January, the ODPM survey said, up from £162,654 in December.
The fastest price rises were seen in Scotland and in the northern regions of England.
There was more bad news for those still struggling to get onto the property ladder, with inflation for first-time buyers rising to 12.1% in January from 6% the previous month.
The ongoing strength of the housing market has been a factor in the Bank of England raising interest rates to 4% over the past few months.
So far the rate rises appear to have had little or no success in cooling the market, and although the Bank left rates on hold last week many analysts expect more rate increases in the months ahead.
Lagged indicator
The government started producing its own monthly house price survey last year, using information from about fifty lenders.
Unlike the Land Registry survey the new government index does not contain information on cash purchases, which account for about a quarter of the market.
Another drawback is that it is not very timely, appearing two months in arrears, in comparison with the surveys from the main mortgage lenders.
Annual prices inflation hit 9.7% in January, the Office of the Deputy Prime Minister said, up from 8.3% the previous month.
The acceleration echoes the findings of other property surveys by the major mortgage lenders.
However, the other surveys have reported prices rising at a much faster rate than the government findings.
The latest figures from the Halifax and Nationwide show annual property price inflation rose by between 17-18% in February.
Onwards and upwards
The average UK house cost £163,645 in January, the ODPM survey said, up from £162,654 in December.
The fastest price rises were seen in Scotland and in the northern regions of England.
There was more bad news for those still struggling to get onto the property ladder, with inflation for first-time buyers rising to 12.1% in January from 6% the previous month.
The ongoing strength of the housing market has been a factor in the Bank of England raising interest rates to 4% over the past few months.
So far the rate rises appear to have had little or no success in cooling the market, and although the Bank left rates on hold last week many analysts expect more rate increases in the months ahead.
Lagged indicator
The government started producing its own monthly house price survey last year, using information from about fifty lenders.
Unlike the Land Registry survey the new government index does not contain information on cash purchases, which account for about a quarter of the market.
Another drawback is that it is not very timely, appearing two months in arrears, in comparison with the surveys from the main mortgage lenders.
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