£250,000: cost of buying the average UK home

House for sale 1The average price paid for a home across the UK has reached £250,000 for the first time.

Official figures released by the Office for National Statistics (ONS) said the landmark price was set at the end of 2013.

It means that thousands of new house buyers will be paying stamp duty at the three per cent rate which starts at the £250,000 threshold.

ONS figures showed that house prices increased by 5.5 per cent in December compared with a year earlier and also rose slightly from 5.4 per cent in November 2013.

The average rise for the 12-month period across England was 5.7 per cent. Prices in Wales and Northern Ireland went up by 4.8 per cent over the year whereas in Scotland the increase was just 0.5 per cent.

Annual price increases across England were driven by 12.3 per cent rises in London, 4.6 per cent increases in East England and 4.3 per cent rises in the West Midlands.

Excluding London and the South East, UK house prices climbed 3.1 per cent in the 12 months to December 2013. On a seasonally-adjusted basis, average house prices increased by 0.9 per cent between November and December.

Prices paid by first-time buyers in December were 7.4 per cent higher on average than a year earlier. For existing owners, the price increase averaged out at 4.7 per cent for the same period.

ONS figures show that prices are now 1.6 per cent higher than during the pre-financial crisis period in the early months of 2008. They indicate that price growth is continuing across parts of the UK, especially London where increases are double the national average.

Other measures of house prices, including figures produced by Nationwide and the Halifax, suggest that price rises are lower than the ONS data indicates. Their latest price indices point to an average price for a property of about £175,000.

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One Response to £250,000: cost of buying the average UK home

  1. Lets home this figure comes down in the next year. With these increases we will see the age of first time buyers get higher and higher!

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