Soaring house prices rise almost £20,000 in a year
The average cost of a home in England and Wales rose by 0.5% during the month to reach £263,113 – £54,000 above the low point reached in April 2009 during the housing market correction.
It was the tenth month in a row that property values have set a new record, according to LSL Property Services and Acadata. The typical home is now worth 7.3% or £17,877 more than it was a year earlier.
Activity is being fuelled by increasing numbers of purchases by first-time buyers and buy-to-let landlords, as consumer confidence sweeps the country. Low inflation and healthy wage growth are energising household finances, and infusing aspiring buyers with greater optimism.
London continued to outperform other regional housing markets, with house prices in the capital rising by 13.2% during the past year.
Demand shows no sign of slowing. More house building is imperative to keep the momentum going, and to ensure that price rises are sustainable, in particular for first-time buyers – who remain the key ingredient at the lower end of the market.
The Royal Institution of Chartered Surveyors said it expected house prices to continue their upward march, as the mismatch between supply and demand intensified.
At Royds, our Property department has a separate specialised section in which we can advise clients on all types of residential transactions. We have a wealth of knowledge in advising individuals and are always happy to run through the latest procedures and options available to them.