Increase in UK House Prices Slows in March
According to a recent report by Nationwide Building Society, housing price growth has now slowed a bit compared to the intense growth it has seen in the months leading to March. March saw home values rise by only 0.4%, but prices are still almost 10% higher than the same time last year. And London prices continued to rise creating the largest contrast ever in average house cost compared to anywhere else in the UK.
The average house cost in the Capital city has now surpassed £362,000. This price is more than double the average cost of everywhere else in the UK at £180,264.
Although the house prices are still increasing the rate of increase has slowed a bit.
Robert Gardner with Nationwide commented on the house price increase across the UK, saying: "There are some tentative signs of moderation."
He also believes the recovery phase of the housing market is in full swing and many fundamentals point in the direction that momentum of the growth will not slow down anytime soon.
Gardner continued discussing the house prices in London compared with other parts of the UK, saying: "The gap between house prices in London and the rest of the UK is the widest it's ever been.”
The increase in house prices is due to the influence of the Help to Buy scheme which will fortunately continue until the end of the decade, according to the most recent Budget. Many proponents of the Help to Buy scheme are in support of the scheme, but are cautious of a bubble developing in the short term.