House prices are continually one of the most contentious political issues in the UK. From commuters living under canvas to make ends meet in London to the ongoing saga of first-time buyers, it’s rarely out of the news. Timetric has collected the latest house price data to help demystify what’s going on in the British housing market.
National
The latest data from the Department for Communities and Local Government indicates that prices have risen over the last year in England, Scotland and Wales. In part, this is due to the current public spending situation. In Northern Ireland, according to the Royal Institute of Chartered Surveyors, cuts have, and will continue to have, a significant impact on Northern Ireland’s public-sector dependent economy.
Regional
All regions saw increases in average house prices over the year to June. The largest were in London, where (as ever) population increases and lack of supply dictate matters. In contrast, the smallest increase was in Yorkshire and the Humber. London also remains the English region with the highest average house price as well as the greatest increase in average house price from the previous year, with the North East being the lowest. One startling fact – half of the regions in the country have an average house price less than half of that of London’s!
First Time Buyers
The average price of homes bought by first time buyers has continued to increase. This may indicate increased confidence among first-time buyers, pointing towards a continuing recovery in the housing market. However, there is some evidence that the lending policies of the major mortgage banks are a factor; Northern Rock, for example, will not lend against small studio properties.
Newly-built houses
New-build house prices are increasing but are still some way off the peak prices seen in late 2007. As buy-to-let investors have left the market, the properties they found attractive – largely smaller, cheaper, and easier to rent – have remained on the market, depressing overall prices.