Shropshire Star

Shropshire house prices rise by 5%

House prices in Shropshire increased by five per cent in the second quarter of the year, mortgage lender Nationwide said today.

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Mid and West Wales's properties grew even more, by 10 per cent in the same period,.

Around the UK prices increased by 11.8 per cent year-on-year in June to reach another all-time high of £188,903, with local sellers reported higher prices between April and June.

A year-on-year jump in the local figure left Shropshire's average house worth £180,026 in the second quarter, after a much slower one per cent year-on-year increase in the first three months of the year.

It means the average Shropshire home is now worth 12 per cent more than it was 10 years ago.

Mid and West Wales's 10 per cent increase leaves average prices at £153,853. That figure is nine per cent higher than its equivalent from 2004. The region is the cheapest in Wales.

The national figure has been skewed once again by rapid rises in the average price of property in London, which have leapt by 25.8 per cent in the last year and broken through the £400,000 mark for the first time.

The typical price of a London property is more than double the average UK house price, at £400,404.

Across the UK, all regions recorded annual price gains for the fourth quarter in a row.

In Wales, property prices are up by 9.3 per cent on a year ago to standing at £145,812, and in the West Midlands they have risen by 8.2 per cent year-on-year to £160,383.

Robert Gardner, Nationwide's chief economist, said house prices surpassed their 2007 peak levels in the second quarter of this year, "just as UK economic output is likely to have surpassed the high water mark reached before the financial crisis".

He said the latest figures show there is still "significant variation" in the performance of the housing market across the UK.

Across the country as a whole, prices are just under one per cent above their pre-financial crisis peak, but when London is taken out of the equation they are 0.4 per cent below this previous high.

Last week, the Bank of England moved to put curbs on riskier mortgage lending by announcing that loans of 4.5 times a borrower's income or higher should account for no more than 15 per cent of new mortgages issued by lenders.

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