It’s no secret that property prices across the United Kingdom are rising. Whether you live in a major urban area like London or Manchester, or in the Cornish countryside, over the last year you will have seen property prices rise dramatically in your area, as the market fails to provide enough homes for all those that need them. As a property blog, we’ve talked about rising property prices an awful lot over the last few months, but this week new data has come to light that needs to be shared with those involved in the property market.
This data, collected and compiled by the Land Registry in a nationwide survey and reported by The Mirror (http://www.mirror.co.uk/news/business/housing-crisis-pushing-up-property-6915194), has shown that on average property prices are rising by £27 every day across the United Kingdom. This per day average has been calculated from the figures related to the past twelve months up until this October, which show that property prices have increased by 5.6%, meaning the average house is now worth £186,350, up £9,856 from the last year. Additionally, the survey carried out by the Land Registry also shows that prices rose by 0.4% from September to October, mainly due to a shortfall of suitable homes in many parts of the country.
So how much longer can this kind of rise continue? And what does it mean for people involved in the property market, like the buyers and sellers out there? Well, at the moment many property experts are not sure. Whilst it is clear that this kind of growth is unsustainable in the very long term, and will most likely lead to a crash if not curtailed, at the moment it is proving very lucrative for lots of property developers. As they can now charge more than ever before for homes, and with the Bank of England having just announced that interest rates will be staying low for some time, it has become the perfect sellers market.
This is because although house prices are high, low interest rates means mortgages are now very affordable, and so more people are encouraged to take on more debt. This makes the current market ideal for savvy property sellers looking to make as much money as possible from their portfolio, and as a result it could be a good idea to start selling as soon as possible, before the market takes a turn for the worse.
However, it is a different story altogether for buyers out there in the United Kingdom. With prices now at record highs for recent years, those looking to buy will have to pay way over the odds for properties, especially in cities and other over-populated areas where the housing shortfall is more severe. However, there are bargains out there to be found, especially in towns, rural areas, and villages, so don’t be dismayed. Smaller homes are also much cheaper, and can be great additions to a burgeoning or an established property portfolio.