The rate of capital growth dropped marginally in November 2013, but property prices still hit a record high, fuelled by strong demand for homes across the country, particularly in London, according to the latest house price index (HPI) published by the Office for National Statistic (ONS) shows.
The HPI shows that property prices appreciated by an average of 5.4% year-on-year to an all-time high index level. However, November house price inflation fell to 5.4% from the 5.5% of October.
David Newnes, director of LSL Property Services, says: "As the economy starts to spring back into shape, house prices have bounced back too over the past 12 months. Prices have been moved upwards driven by an increased demand for property, boosting sales in the process."
UK property price growth was led by London, where property prices rose by 11.6% year-on-year. Residential property prices increased in all four home nations and in all nine regions monitored by the ONS.
Stuart Law, CEO of Assetz, commented: "Well-established locations in city centres and suburbs, accounting for around 85% of residential property, and where employment is high, will now see strong price growth and this is reflected in these year-on-year price growth figures of over 5% in England and Wales."