In recent months, property news has been all about the rising prices of the housing market in the United Kingdom. Particularly in major cities like London, Manchester, and Birmingham, house prices have been rising at astonishing levels, similar to those seen in the boom days of the 1990s, before the global financial crash. However, the Office for National Statistics are now reporting that house prices have risen on average by £3,000 from May to June this year.
Clearly, a rise of this kind in house prices has major implications for the market, and for both buyers and sellers. So, to keep you up to date with what this means for the market, let’s take a closer look at this price rise and answer some of the key questions that have arisen from it, starting with the exact details of the rise itself.
What are details of this price rise?
This week the Office for National Statistics (the ONS) is reporting that, on average, houses across the United Kingdom have seen £3,000 added onto their value. This means that the average house price has increased from the £274,000 reported in May, to £277,000 in June. This rise is concurrent with the current housing climate in the UK, which is nowhere more extreme than in London, where house prices have been increasing in value for the past year. Currently, house prices in London are rising by an average of 5.3% annually, meaning that the average price stands at £513,000. This is compared to the North East, where the average house price is £156,000.
So what does this mean for people buying and selling properties in the United Kingdom?
Let’s start with those selling property. Clearly, rising house prices can only be good news for people selling property across the country, but particularly in areas where housing is scarce, such as in London. These are now sellers’ markets, so rising house prices can only mean you getting more money for your property. However, experts are beginning to wonder how long prices of this nature could go on, so expert advice is to sell your property before it’s too late, when prices will drop and the market will crash.
However, while these astonishing price rises are great news for sellers, they mean the opposite for buyers. Buyers, especially in cities and large urban areas where housing is extremely scarce, can expect to pay over the odds for properties. Many industry experts are suggesting that buyers either buy in areas where housing is plentiful and prices are lower, or continue to rent until the market readjusts and prices lower to a more normal level.
What will happen to house prices in the future?
Although we have been seeing an increasing in house prices for some time, experts are warning that such rises are unsustainable in the long term. This means that at some point in the near future, the market will work to readjust itself and prices will lower to more usual levels. However, at present, no one is quite sure exactly when this will happen.