According to the latest house price index from the Nationwide Building Society house prices increased by 0.3% in June and were 1.9% higher than in June 2012.
The price of an average house in the UK in June stood at Â£168,941 compared to Â£165,738 in June 2012 says the mortgage lender.
But this overall trend masks the regional picture that tells a starkly different story.
London house prices rose by an average of 5.2% over the year to a Nationwide BS record breaking Â£318,214, taking the gap between the capital and the rest of the UK to the widest that it has ever been.
When compared to the start of our current economic woes back in about Q3 2007 London house prices are now higher than back then. But the rest of the country is still on average 9% below the regional levels seen at that time says the building society.
Every day London becomes ever more a preserve of the wealthier amongst us and when house prices go up so do the rents that they command. So those that work at the lower end of the earnings scale will soon not be living in London, just travelling at their own great expense in order to service the rich. Is this is new type serfdom what is meant by the term 'social mobility' in our modern country?
Commenting on the figures, Andy Knee, Chief Executive of LMS, said:
“This morning’s figures once again highlight the regional discrepancies in house price growth. The headline figure – that house prices have increased by 0.3% in the last month – implies that this trend has been experienced nationwide but in reality this is far from the case.
“The two-speed house market has never been so evident. While the typical price of a home in the capital is at an all-time high other regions are still struggling to return to levels last experienced during the pre-crisis peak.
“As house prices in the South East continue to climb it is going to become increasingly difficult for people in this area to get their foot on the ladder. Hopefully, the introduction of the government’s mortgage guarantee scheme next year will come to the rescue for help those that are currently struggling to source a deposit.”