Average UK house price 'tops £100,000'

The average price of a house in the UK has broken through the £100,000 level for the first time, the latest figures from the Halifax bank suggest.

Average house prices

Overall UK £100,400

Greater London £175,900

South East £148,600

South West £117,800

East Anglia £103,600

West Midlands £92,900

East Midlands £80,400

North West £71,700

Northern Ireland £71,700

Wales £70,200

Scotland £68,800

Yorkshire & Humberside £63,100

North £61,700

Source: Halifax

The Halifax said UK house prices grew by 1.6% during January, with the annual rate of house price inflation climbing to 16.8%.

"The housing market has shown little sign of slowing from the strong growth seen at the end of 2001," the bank said.

Last week the latest survey from rival mortgage lender Nationwide found prices growing by 0.2% in January, with an annual growth rate of 11.7%.

The UK housing market has continued to remain buoyant despite fears of an economic slowdown.

The Halifax said the recent strength reflected a bounce back in consumer confidence following the events of 11 September, and added that a lack of properties coming on to the market was also contributing to higher house prices.

Market overheating?

But like the Nationwide, the Halifax warned that the current growth rates are unlikely to be sustained.

"We continue to expect slowing UK economic growth and rising unemployment will result in an easing in house price inflation over the course of 2002," it said.

Worries that the housing market is overheating has led to extra caution from some lenders.

Last month, the NatWest and the Alliance & Leicester banks introduced curbs on mortgage lending in areas where prices have risen steeply due to fears that buyers may be overextending themselves.

Regional mix

The Halifax found that the average UK house price last month was £100,400.

But the bank added that the figure disguised wide regional variations in prices, which had been made starker by sharp differences in the pace of house price inflation in different parts of the country.

In Greater London the average price was £175,900, while in the north of England the average price was £61,700.

The prices are higher than those found by last week's Nationwide survey which said the average UK house was now worth £93,231.

But the last set of figures from the Land Registry's survey prices in England and Wales suggested housing was even more expensive.

It found the average property in Greater London cost £216,210 during the July to September period last year, while in the north of England the cost was £70,448.