HOUSE prices across the Portsmouth area have risen by almost four per cent since the start of the year, a report has revealed.
The average value of a property is now £204,673, 19 per cent greater than it was a decade ago.
The figure is 3.9 per cent more than the final quarter of last year, when the average value was £197,078.
But despite the increase, the area is one of the cheapest places to buy a home in the south-east.
Only Bedford, with an average property value of £199,244, and the Isle of Wight, where the average price is £198,470, are cheaper areas.
In Southampton, prices are more expensive to the tune of £238,138, but similar to Portsmouth, the average price there has also increased in the past ten years by 19 per cent.
The findings are contained in Nationwide building society’s latest housing price index report. Martyn Winfield, chairman of Portsmouth and District Private Landlords Association, said that despite the rise in Portsmouth, he did not think it would put a lot of prospective landlords off buying homes to let as it’s still cheaper across the city than other areas. Landlords are looking for cheap property, they are happy to pay less and still let it out,’ he said.
‘That 20-per-cent increase seems a bit over the top, but I’m sure Nationwide has done its figures.’
But Mr Winfield recognised prices aren’t getting any lower and said getting planning permission for multiple occupancy homes was also a big issue – since there is a requirement stipulating that other ones shouldn’t be within close proximity.
‘It’s getting more and more expensive,’ he said. ‘I have been looking for property and I have had to look at homes further north of Portsea island.’
Robert Gardner, Nationwide’s chief economist, said house prices in the south-east had now surpassed their ‘pre-crisis peaks.’
Across the UK, prices have risen by 9.5 per cent year-on-year, which is the biggest jump in almost four years and takes the typical property value to £180,264.