Sunday, May 26, 2013

Property price rises stoke fears of a new housing bubble

Fears that George Osborne, the chancellor, is stoking a new housing bubble through plans to boost mortgages may be exacerbated by figures showing house prices grew faster in May than at any time in the past six years.

Prices rose 0.4%, the most since May 2007, driven mainly by the market in London and the south-east – although the rest of the UK also averaged a marginal rise.

Data from Hometrack, a property analytics firm, shows prices grew by 0.9% in the capital last month, and by 0.5% across the south-east.