Property prices continuing to rise, but biggest increases still seen in London

A large part of the upsurge was driven by a 13.2 per cent rise in London property values in the 12 months to January but prices are growing increasingly strongly across many parts of the UK, the Office for National Statistics (ONS) said.

Prices rose by 3.4 per cent in Yorkshire, with the average now standing at £170,000.

Over the last year, prices have grown by 7.1 per cent in England to reach £264,000 typically, by 6.9 per cent in Wales to around £166,000, by 2.7 per cent in Northern Ireland to £132,000 on average and by 1.4 per cent in Scotland to around £183,000.

Campbell Robb, chief executive of housing charity Shelter, said the figures are a “blow” to young people trying to get on the property ladder.

He said: “No matter how hard young people and families work or save, these days most simply can’t keep up with sky-high house prices, and are instead 
facing a lifetime of unstable renting.

“If we want to give the next generation a fighting chance, the Government has to get serious about building the affordable homes we need now.”

William Zimmern, a consultant at PwC, said he expects the acceleration in property prices to continue into the spring. PwC’s analysis suggests that by the end of the year, average UK property prices could edge up by another £10,000 – and in London they could hit the half a million pound mark.