Average house price passes £200,000

The average house price in the UK now stands at more than £200,000, according to official government figures.

The Department for Communities and Local Government (DCLG), which keeps track of house prices, says the annual inflation rate reached 9.9% in December, up from 8.8% in November.

This puts the average UK house price at £201,090.

Although the DCLG survey has a similar inflation rate to other reports, many say actual prices are different.

The Halifax and Nationwide both say prices are lower. Based on their on mortgage lending, average house prices stand at £188,623 and £173,325 respectively.

While giving different house price figures, due to individual sampling techniques, the surveys all show that house prices have been rising across the UK.

Recent interest rate rises by the Bank of England, which were meant to slow inflation, have had little impact so far.

“There are tentative signs in the latest mortgage data and survey evidence that housing market activity has peaked and it could be that the…increase in interest rates enacted is just started to weigh down on the housing market.” said Howard Archer of Global Insight.

The DCLG survey shows house prices in London have gone up by 11.8% in London, 9.1% in Wales, 8.7% in the South East and 7.7% in the South West.

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