According to new data released by Nationwide Building Society, UK house prices increased by 8.8% in January when compared to the same month in 2013.
Nationwide also announced that house prices increased by 0.7% in January alone.
Based on its own mortgage data, Nationwide’s survey showed that the UK’s property market experienced an influx in activity towards the end of 2013.
However the Building Society also stated that UK property prices are still 4% below their 2007 peak prices, with the average property price standing at £176,491.
“The housing market is continuing to gather momentum on the back of further solid gains in employment, record low mortgage rates and rising confidence,” Robert Gardner, Nationwide’s chief economist, commented.
Increase in first time buyers
Nationwide has also commented on a rising number of first time buyers now entering the market.
Their data reveals that 32% more people purchased their first property in Q3 2013 when compared to the same period in 2012.
“As well as accounting for a significant proportion of housing transactions [first time buyers], historically around 40% of transactions involving a mortgage, they also play an important role in the wider market, for example in helping to complete chains, enabling those that already own a property to move,” Gardner added.
UK property market
According to HM Revenue and Customs (HMRC) over one million properties were sold over the course of 2013.
Out of the properties sold, 12,875 properties purchased in England with the support of the government’s Help to Buy equity loan scheme in first 9 months it has been available. The first part of this scheme was to help buyers purchase new-build property.
The second part of the government’s scheme, which was made available in October for people who want to buy new-build or existing properties, enables buyers to purchase with a 5% deposit. Figures suggest that since this scheme was introduced, the number of buyers purchasing property with a 5% deposit has tripled.