Average UK house prices now above peak of 2007, latest data shows

Average house prices across the UK have now exceeded their Autumn 2007 peak and further increases are expected, according to the latest research figures.

Findings of the research by the Connells Group, which has a network of over 520 estate agencies across the country, show a 2% uptick in prices compared to the peak.

This comes after the value of property rose for the fourth consecutive month and the data also indicates a 4.5% increase on house values in the second quarter of this year compared to the first three months of the year.

This exceeds the 3% growth that was forecast by Connells and overall the figures are very positive news, according to David Plumtree, Connells Group Estate Agency chief executive.

‘The economic growth, strong market confidence and post-election certainty has galvanised buyers and sellers to create a buoyant housing market. It certainly is a seller’s market and those looking to move should capitalise on this,’ he added.

Separate research by online estate agent eMoov has found that demand for London property has increased for the first time this year, having declined steadily since June 2014. Demand across London’s boroughs has climbed by 7% since March, although it is still down 15% since this time last year.

‘It doesn’t surprise me that despite the market cooling in some of the capitals more prestigious boroughs, house prices in London have continued to rise. It’s long been accepted that London is one of the most expensive cities to live in the world, let alone the UK, but now that the average house price has tipped above the half a million mark, it really highlights how out of control the property market has become here,’ said eMoov chief executive officer Russell Quirk.

He also pointed out that house prices outside of London and the South East have continued to increase by 5.2%, and this shows that the London exodus for more affordable property is continuing. ‘Hardly surprising given the new London average and the resulting ripple effect, as buyers search for a realistic way to get on the UK property ladder,’ he concluded.