House prices rocketing £50 A Day

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by Kay Murchie

According to the Department for Communities and Local Government, property prices are rocketing to nearly twice their rate 12 months ago. The average cost of a home increased by nearly 11% to £211,056 – an increase of £50 per day.

Bungalows and detached properties saw modest rises of 0.1% and 0.3% respectively and the cost of semi-detached homes rose by 0.6% and terraced houses rose by 0.9%.

However, the official figures suggest that the increase in properties prices is slowing according to economists. The annual rate of increase is down from 11.3% for the year to the end of April and a 2-year high of nearly 12% achieved in February.

A spokesperson for the Royal Institution of Chartered Surveyors commented that the figures prove that the property market was still soaring in the second quarter but house price inflation is now seeing a slowdown.

Property prices should see a steady slowing over the next few months. Experts warn of a further interest rate rise by the end of the year which will dent confidence and cause a rapid deterioration in affordability.