The latest house price index from the Office for National Statistics (ONS) shows house prices have increased by 5.4 percent in the 12 months to Nov 2013.

This is down from a yearly increase of 5.5 percent in the year to October.

London prices have still been surging ahead with the capital seeing increases of double the UK average.

When looking at the UK without the London and South East, prices in the UK rose by 3.1 percent in the year to November 2013 showing that house prices are now increasing strongly across the UK says the ONS.

Growth over the year to November 2013 in the various parts of the UK was as follows:

England: 5.6 percent.

Wales: 5.4 percent.

Scotland: 2.5 percent.

Northern Ireland: 3.3 percent.

Within England price rises were mainly driven by:

London: 11.6 percent.

South East: 4.5 percent.

West Midlands: 4.4 percent.

Commenting on the figures Andy Knee, Chief Executive of LMS, said:

Houses-6 © The Economic Voice2013 has seen a ‘residential renaissance’ in the fortunes of the UK housing market, with average house prices surging forward by 5.4% in the past twelve months. However, the annual increase is down slightly from October’s 5.5% suggesting November saw a slight slowdown in the lead up to festive season. The market has clearly been propelled by the prosperous market in the capital, but it is evident that appetite for property is growing throughout the rest of the country – with notable price rises occurring in the South East and the West Midlands.

The coming twelve months will be the true test for the market, with Help to Buy picking up the mantle from the axed Funding for Lending Scheme (FLS) and the introduction of more stringent lending measures which could limit borrowing levels. It is also vital that the vast chasm between the demand for property and the supply of new homes is satisfied to maintain growth and ensure the market is restored back to full health. Steps have already been taken and plans outlined, which is indeed an encouraging sign. But rhetoric must be realised, if the UK property market is to continue to prosper this year.

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