Live updates

House prices: Gap in London and rest of UK 'widest ever'

The gap in house prices in London and the rest of the UK is the widest it's ever been, reports ITV's Business Editor Joel Hills.

See the chart below for a national breakdown.

Average London house price over £400,000 for first time

House prices in London have soared by 30 per cent since 2007. Credit: Chris Ison/PA Wire

The typical price of a London property is now more than double the average UK house price breaking through the £400,000 mark for the first time, Nationwide said.

Cambridge saw the biggest surge in house prices with a 20 per cent increase putting the average cost of a house there at £419, 187.

While the value of properties in St Albans rose 18 per cent reaching an average of £451, 800.

Newcastle was named as the worst-performing city with only a three per cent increase in house prices taking prices there to £181, 473 typically.

In Wales property prices are up almost 10 per cent on a year ago now standing at £145,812.

And in Scotland, typical prices rose to £141,872, figures show.

However, In Northern Ireland, where the housing market is still recovering from some sharp falls in the wake of the financial crisis the average house price now stands at £117,150.

This is around half the level they were at their peak.

Advertisement

Typical UK house price now £188,000

House prices across the UK are at an all-time high. Credit: PA

The typical house price across the UK has risen 11.8% to reach an all-time high of £188,903, Nationwide has reported.

Last month figures from the Office for National Statistics found first-time buyers have to pay even more to get on the property ladder with a typical starter home now costing £199,000.

Read more: First-time buyers face surge in house prices

House price increases 'slowing amid bubble fear'

The monthly rate of house price growth across England and Wales has halved since April as widespread talk of a possible bubble has injected more caution into home buyers' behaviour, property analyst Hometrack has reported.

Hometrack says the rate of price increases is slowing. Credit: PA

Prices rose by 0.3% month-on-month in June, edging down from a 0.5% monthly increase in May and a 0.6% uplift in April, and Hometrack said it expected the rate of growth to continue to slow.

There was no new growth in buyers registering with agents in June and at 96.6%, the typical proportion of the asking price being achieved fell for the first time in four months, indicating that estate agents were finding it harder to sustain the pace of price growth.

House prices rise for 13 months in a row

Nationwide report showing property prices have risen by 11.1% over the last year also marks the second month in a row where annual growth in property values has hit double digits, following a 10.9% year-on-year uplift in April.

House prices have leapt by 11.1% over the last year in the strongest annual growth seen since June 2007, Nationwide has reported. Credit: PA

But on a monthly basis, prices rose by 0.7% in May, which represents a slowdown compared with the 1.2% monthly increase seen in April.

Property values have now been edging up for 13 months in a row on a month-on-month basis. Across the UK, average house prices now stand at £186,512.

Robert Gardner, Nationwide's chief economist, said it is "too early" to say whether the housing market is seeing the start of a cooling trend.

Mr Gardner said some signs of a slowdown may partly be due to toughened mortgage lending rules introduced in April, "which may take a few months to bed down".

Advertisement

Coastal house prices 'still cheaper than UK average'

Seaside house prices are still cheaper on average than in Britain as a whole, despite a 42% increase in coastal property prices in a decade, a report has said.

At £196,826, coastal living is still £42,000 cheaper than across Britain generally, with national average houses prices at £239,518, according to Halifax.

House prices by the sea 'increase 42% in a decade'

House prices in seaside towns have risen by about £500 a month over the last decade, a report has found.

According to Halifax, average seaside prices have grown by 42% in the last 10 years to reach £196,826, although seaside house prices are still cheaper on average than in Britain as a whole.

With an average house price of £574,089, Sandbanks in Dorset is in the top 3 most expensive seaside towns. Credit: PA

The most expensive seaside town to live in is Salcombe in the South West with an average house price of £615,344.

Meanwhile, the biggest increase in prices over the last decade was in Fraserburgh in Scotland, with a 141% rise to £129,325.

House market boom 'biggest risk' to economic recovery

Britain's booming housing market represents the "biggest risk" to the economic recovery, Bank of England Governor Mark Carney has warned.

With approvals for large mortgages on the increase, Mr Carney expressed concern about the dangers of another "big debt overhang" building up.

Governor of the Bank of England Mark Carney during a news conference this week. Credit: PA

In an interview with Sky News's Murnaghan, to be shown tomorrow, he said there was little they could do about the "deep, deep structural problems" in the housing market, with demand for homes outstripping supply.

Mr Carney surprised some analysts last week when he played down the prospects of an early rise in interest rates - despite the fears of a housing market bubble.

Load more updates