House Prices Continue To Rise Across The Board
It seems that the citizens in the UK are consumed with the prices of houses as being a primal factor in the economy.
The market was fairly slow earlier this year, however the market in London continued to flourish, leading other cities in the UK. According to Nationwide, the current annual rate of housing growth in the capital is at 10.6%.
During the third quarter period, London experienced rapid price developments in the southern region of England. The increase was marked as slow movements in the Midlands and in the northern regions.
With the statistics provided by the Land Registry, property market growth has slowed to the rate of 4.2% in comparison to the data received last year. In addition, the annual inflation rate for housing prices has declined. The Registry reports low levels over the course of the last 12 months. However, those residing in the east of England having the largest annual growth percentage with prices up to 8.4% as compared to the previous year.
Compared to last period, all of the regions have noted a slight price increase. Nonetheless, it has not been with the same speed as London’s growth.
If the trend continues to rise, the average home in London would eventually cost upwards of £1 million by the year 2020. If the trend does continue to increase over time, the demand for affordable housing surrounding the capital will need to be met.
Land Registry Data
Those in the business of selling houses are taking plenty advantage as asking property prices rise up to £2,550 per month. This is according to the latest data research. This is a record high dating back to September, 2002 with the biggest sale belonging to Wales.
The current asking price is higher than it was in 2014. The rate of 9.5% or £53,923 was the asking price in London. At the capital, the figures are at an average of £602,003, which is £4,888 higher than the previous year’s receipts reported in July.
The Land Registry reflects a monthly index of repeated sale’s formulas, however it does not validate property, which has not been sold twice since 1995. The Registry excludes a large sum of the property market as new buildings are not included in the report or properties belonging to long term owners.
The Housing Market Report (London)
The expected direction of the housing market in London includes new construction, repossessions, affordability and prices. Although the report is current, it may not be fully accurate in lieu of reporting time frames. The latest data were taken from a July 2015 report. It’s updated monthly, however.
- First time buyers and funding have decreased
- Increase of London’s house prices by 4%, current value £493,000
- Unemployment rates fall hard
- Private rents increased to 3.2% (rents are almost twice the average nationwide)
- Lower cost of maintenance for owners
- Call for new housing fall as well as materials for house building
- Mortgage possession and arrears have declined, landlord possession orders inflated
The Consequences of Raising London’s Housing
The property market seems to have transitioned as autumn falls in London. The over inflated London property prices have driven buyers to seek shelter elsewhere. Property in choice neighborhoods in Central London slowed some time ago and those in the common parts of London took over the market.
Regionally, London posted the lowest potential housing price growth, at 10.2% vs the 19.3% UK average, covering the next five years and they are subject to see little or no rise in property. Consequently, statistics are lower than reports earlier this year. If the trend picks back up for London, house prices would rate a 25% increase in three of those five years.
High Rise for UK
It’s the biggest hike since August 2014, according to Halifax, reaching £205,240 on average. The UK’s monthly growth average will likely stay on course. In October, housing prices shot up by 9.7% and this is compared to last years records. This also includes a comparison to September’s 8.6%.
The coming months are going to be crucial to the property market as the demand for homes becomes stronger and the buyer’s have less properties on the market.
Royal Institution of Chartered Surveyors, Nationwide and Halifax have all flagged a loss in the capital as those living the outer layers of Britain were not faced with inflated property prices.
The affordability of housing is needed to put the market back into perspective and balance out the market. As it stands now, there is only a limited amount of room left for growth in the London housing market. The forecast is a period of price growth in the northeast, however, the triggers for this opportunity is weak, all according to Lucian Cook of Savills.
Low mortgage rates, progressing economical state and household finances are contributing factors to the increasing demands for housing and a shortage of properties for sale. If housing prices should rise in 2016, the shortage of properties will offset the 6% increase of housing prices.