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Property prices in the UK reach record levels

UK house prices have risen to their highest levels according to the Office of National Statistics (ONS).

For the first time the ONS house price index has surpassed the level reached in January 2008 with a level of 185.8.

The price of a property has increased by 3.8% in the year to August across the country. The average house price is now £247,000.

For home movers the gap between their current home and the next increases which means they need a larger mortgage.

Halifax with different data

The Halifax has reported this month from their data that the average house prices are now £170,733 and this remains lower than the recorded level reached in August 2007 of £199,612.

Rising house prices allows the older equity release mortgage buyer to stay in their home while accessing the wealth in their property for home improvements, holidays or gift to a family member or friend.

There are significant differences due to the way the index is calculated where the ONS use the actual prices of properties sold with a greater weighting placed on homes sold in London.

The Halifax and the Nationwide use data based on the mortgages approved and exclude cash transactions.

Is the property market overheating

There are concerns that the house prices may be rising too quickly, especially in London.

Significant interest from first time buyers for the government’s Help to Buy scheme could inflate property prices. A deposit of only 5% is required with the government adding a further 15% of the loan.

The scheme is not available to switching remortgage buyers or buy-to-let investors as it is designed to help new home ownership.

There is also a risk that the scheme will allow people borrow more to buy their homes and experience financial difficulties if interest rates rise in the future.

What are your next steps?

Speak to our LCM mortgage advisers if you are planning to move home, buying your first home, remortgaging your existing home to a new cost effective mortgage deal or are a buy-to-let investor.

For equity release buyers our London City Mortgage brokers can recommend lifetime mortgages allowing you to receive cash from your property to repay an interest only mortgage or help maintain your standard of living as costs rise.

Learn more by using the mortgage cost calculators, equity release mortgage calculator and property value tracker chart. Start with a free mortgage quote or call us and we can take your details.

Use your dashboard to access online mortgage quotes, money off vouchers and start your mortgage application online 24/7 on desktop, tablet or smartphone.

Mortgage Best Buys

These are examples of mortgage products we can approach with many more offering interest rates and flexibility to meet your needs.

1.18% Fixed Rate
60% Loan to Value
£1,034 App Fee
Until 31/10/2022
Reverts to 3.59%
1.17% Fixed Rate
60% Loan to Value
£1,025 App Fee
Until 31/09/2022
Reverts to 3.59%
1.16% Fixed Rate
60% Loan to Value
£1,525 App Fee
Until 01/11/2022
Reverts to 4.09%
1.19% Fixed Rate
60% Loan to Value
£999 App Fee
2-Years Time
Reverts to 3.59%

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    Equity Release may involve a Lifetime Mortgage or a Home Reversion Scheme. To understand the features and risks, please ask for a personalised illustration. Equity Release may affect your entitlement to means tested state benefits and will impact on the size of your estate. For Equity Release London City Mortgages charge a fixed fee upon completion of £695. For Mortgages a fixed fee is charged on application. Typically this is from £295 up to £495 for the services selected.


    Equity Release - Equity Released from your home will be secured against it. Mortgages – Your home may be repossessed if you do not keep up repayments on your mortgage or other loans secured against it. Think carefully before securing other debts against your home. The information contained in this website is subject to the UK regulatory regime and is therefore intended for consumers based in the UK.


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