Increase in house prices of 2.2% is ‘positive indicator’

UK house prices increased by 2.2 per cent in the 12 months to January 2013, according to figures from the Office for National Statistics.

Aberage house prices reached £234,000 in January, up from £229,000 in January 2011, which the ONS says was driven primarily by a 5.5 per cent and 3 per cent increase in London an East England, respectively.

London remains the most expensive region in England, with the average house price climbing to £403,000 in January, from 382,000 a year earlier, while house prices in the East of England rose from £245,000 to £252,000.

Excluding London and the South East, UK house prices increased by 1.2 per cent over the period from £185,000 to £187,000.

The North East had the lowest average house price at £146,000, up from £143,000 in January 2012.

Legal & General Mortgage Club managing director Ben Thompson says: “It may seem to many that the housing market is a mixed bag at the moment. Although credit and gross lending remain constrained, there are still plenty of positive indicators. Affordability is likely to improve in the near future and 26 per cent of consumers expect the housing market to be “better” or “much better” in 12 months’ time.”