House prices rose at a far faster pace than previously thought in the period around the financial crash and may still be outpacing official forecasts, according to a new house price index being launched by the Office for
National Statistics in June.
Preliminary figures for England and Wales, released today, estimate an average increase of 6.1 per cent between 2003 and 2011, compared to 4.6 per cent cited in Land Registry and 5.2 per cent in existing ONS data. According to Reuters, the new index, which will replace these surveys, is more reliable as it includes information relating to new-build properties and cash purchases.
Given that, for the period so far covered, the rises are greater even than those reported by the likes of Nationwide and Halifax, it is likely more recent price increases will also come in higher than expected. The report coincided with the latest Land Registry data for February, which showed a rise of 6.1 per cent for the year ending last month as a rush to beat tax rises for landlords picked up pace.
Houses in areas affected by transport developments helped drive the market higher, notes the BBC, with the biggest increase in the country – 19 per cent – reported in the Crossrail stopping-point of Slough. Other towns with stations on the line also saw hefty hikes, with Hillingdon and Havering experiencing rises of around 17 per cent.
“Other nearby London boroughs also saw big increases,” the report adds, “including Thurrock, where the figure was 17.2 per cent, and Barking and Dagenham, which saw a 16 per cent rise.”
