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House prices in the north rise faster than London

Nationwide said average prices in the north are up 8 per cent year-on-year
Nationwide said average prices in the north are up 8 per cent year-on-year Nationwide said average prices in the north are up 8 per cent year-on-year

Northern Ireland overtook London to become the strongest performing region in the UK, with average prices up 8 per cent year-on-year, according to lender Nationwide.

Figures comparing the three months to the end of June with the same period in 2014 showed prices there had increased to an average of £126,525. 

In London, prices grew by 7.3 per cent over the period, to an average of £429,711, while in the area around London they were up by 6.8 per cent to £315,620.

Prices in the north remain around 45 per cent below their 2007 peak, however. In London prices are now 39 per cent higher.

In Britain, house prices fell last month unexpectedly, taking the annual rate of price increases to its lowest in two years.

Nationwide said house prices dropped by 0.2 per cent on the month in June. Economists had forecast a 0.2 per cent rise - sending the annual rate of growth to a two-year low of 3.3 per cent from 4.6 per cent in May.

Jonathan Samuels, CEO of Dragonfly Property Finance, said: "The property market is a veritable conundrum right now.

"The fact that Northern Ireland outperformed all other regions in the second quarter highlights the way in which different regions can wax and wane. 

"It's hard to predict where the property market is headed. With a low cost of living, very competitive mortgage rates, renewed political certainty and a strong jobs market, there are many positives."