The Office of National Statistics (ONS) yesterday released data confirming that UK house prices had risen 2.7% in the twelve months to March 2013, rising from £229,000 to £235,000 (approx. €268,000 to €275,000) on average. This increase was driven by huge rises in London and South East, where prices rose 7.6% and 3.3% respectively.
Stacy Eden, partner at national audit, tax and advisory firm Crowe Clark Whitehill, comments as follows:
“While the rise in house prices is good news for the UK economy as it tends to boost consumer spending and, of course, housing development, it further highlights the shortage of property, particularly in London and the South East.”
“The construction sector has been in the doldrums for the past few years and therefore we hope that the relaxation of the planning regulations along with the current increase of mortgage availability will result in more residential development.”
“One of the biggest issues that particularly London has to face is building enough houses to support the growing city, which is forecast to hit nine million by 2020.”
Source: Crowe Clark Whitehill