Latest government data shows strong UK price rises

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House prices in England have risen above their 2008 peak for the first time, according to the government data.

The figures, for July, show that the average price of a home in England was 0.9% above the January 2008 peak, and had risen by 3.7% in the previous 12 months.

This is up from the 3.3% increase recorded in June, and puts the average price of a home in England at £255,000. Rises were led once again by London, which raced ahead with a 9.7% year-on-year increase, and where the average house price hit £438,000 in the month.

Across the UK as a whole prices remained marginally below their peak, with a 3.3% increase being recorded in the 12 months to July. Rising prices in England and Northern Ireland were offset by falls in the year to July of 0.7% in Wales and 2% in Scotland.

David Brown, commercial director of LSL Property Services, said the strong house price growth was a “beacon of optimism” but that more homes needed to be built. “Having enough houses to go round is the only real way to keep prices from spiralling too far – and will be vital in creating a sustainable housing market that is accessible to all. The average first home is getting more expensive even faster than average prices – and until that changes thousands more households are turning to the advantages of the private rented sector instead.”