British property market surge recorded in 2003

House prices in the north of England rose by more than twice the UK national average during 2003.

Prices rocketed 33.7% while the average increase recorded in Britain was 15.4%, according to the Halifax house price index.

Prices in East Anglia increased by 14.6% on average, compared with 8.6% in London, 6.7% in the south-west and just 5.8% in the south-east.

In 80% of the UK towns analysed by Halifax, average house prices now stand at more than £100,000 (€142,882).

However, unlike the Irish market, the number of first-time buyers is currently at the lowest level seen since 1974.

According to the British Council of Mortgage Lenders (CML), only 330,540 homebuyers got a foot on the property ladder for the first time in the first 11 months of 2003, compared to 526,300 throughout 2002.

Halifax forecasts that house price inflation will continue to increase in 2004, but expects increases to slow to 8%.

Yesterday, a similar survey by Sherry Fitzgerald reported that first time buyers made up a majority of entrants to the Irish housing market and that house price inflation had slowed from 20% to just over 12%.