Amidst growing concerns over the future of the UK property market comes a critical finding that the average price of houses have increased by 8.4 per cent in the last 12 months.
The data for August 2016 released by the Office for National Statistics recently shows that an average home in the UK is priced at £219,000, which is £17,000 more than that recorded in August 2015.
The average house price in August 2015 increased by £3,000 from July, indicating that the property market continues to show inflation despite the recent geopolitical developments in the UK.
The UK housing market has been growing at an exponential rate since the end of 2013 with the gap between demand and supply widening every year while the increasing prices have resulted in housing being unaffordable to many, especially 13 per cent of first-time home-buyers in the capital.Despite the government’s intervention, the housing market crisis doesn’t seem anywhere near resolution.
London witnessed the highest growth in house prices across England while it costs an average £489,000 to buy a new house in the capital city. Within London, the Newham Local Authority saw the highest growth – 23.7 per cent – as a house in Newham now costs £372,897. In August 2015, the average price of a house in Newham was around £300,000. The next highest growth (19 per cent) in price was seen in the Havering Local Authority, as houses there are now priced around £350,000.
Region wise England saw the highest rise in house price registering a 9.2 per cent growth (from August 2015 to August 2016). The average price of a house in England is now approximately £236,000. The prices have risen across the UK in with Scotland (4.3 per cent) and Wales (2.7 per cent) followed by Northern Ireland where the average house price is £123,000.
This strong growth of house prices in outer London areas reflects the pressure on the UK housing market to meet the demand, as prices continue to grow across the city. Affluent homebuyers, who are hit by an increase in stamp duty and tightened mortgage lending rules, are investing in properties available for cheaper rates in the suburbs, thereby contributing to growth of house prices.
If property development is on the cards, let us know. We have several suitable investment opportunities within the city and its outer suburbs which we’d be delighted to discuss with you and once your new build is ready, we can provide lettings and sale advice.
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