UK house prices accelerate by 7.7% in November 2015
House prices across the UK accelerated in the year to November, rising 7.7%, according to the Office for National Statistics (ONS), with the average cost of a UK home having risen to a record £288,000.
The East of England continued to see the sharpest increase, at 10.2%, with London and the South East seeing rises of 9.8%. Prices in the North East of England saw the slowest growth, at just 0.4%, while down here in the South West property prices have risen 6.5%, the ONS said. Overall, England saw growth of 8.3% to an average of £302,000; in Northern Ireland the rate was 4.6%; Wales saw values up 1.3% and values in Scotland rose just 0.4%.
Rob Weaver, director of investments at crowdfunding platform Property Partner, said: “House prices in Wales and Scotland – the last bastions of heavy industry – are dragging behind, completely out of kilter with other parts of the UK which are steaming ahead.” Howard Archer, economist at IHS Global Insight, said he expects house prices to rise by around 6% in 2016.
Brian Murphy, head of lending at the Mortgage Advice Bureau, voiced a belief that “house price growth isn’t likely to slow any time soon”. He warned that this “creates clear affordability concerns for first-time buyers.” Richard Snook, senior economist at PwC, said: “Strong momentum in the UK property market means prices continue to outstrip growth in average earnings. That makes home ownership more difficult for ‘generation rent’.” We spoke in an earlier blog post about Young people being forced off the housing ladder and it looks like this trend is set to continue for the foreseeable future
While these statistics may make a depressing read for first time buyers, it does in fact mean that the lettings market is bouyant and because tenants are tending to stay longer in tenancies, now could be a wise time to consider purchasing a new investment property. If you would like to discuss the property market then we would love to speak to you and can be contacted on 01803 472595 or drop me an email firstname.lastname@example.org