The annual property inflation that occurs every year has resulted in a record high sales price of the average UK house. The latest figures released from a building society within the UK, called Nationwide, show that there has been a significant increase from last year.
The average price for a home being sold in Britain now totals to £193,048 that represents an increase of £3,594 on the previous year. So why is this the case? We spoke with a Birmingham Letting Agent about this trend and we were told “even though mortgage approvals are still at a low compared to its decade average, house prices are still expected to rise around 5% for the year”
Is there a difference between cities in the United Kingdom? Yes there is and as reported previously in the year, London’s house prices are actually being overtaken by 10 or so other cities within the UK. This is highly unusual and residents of the capital will hope it’s not just an anomaly. So why is the average house price in the UK increasing? Part of the reason is because demand for new housing is very strong and a new supply of modern houses isn’t as fast as it could be. This means there are fewer houses to choose from, thus driving the price of the property upwards.
Although house prices continue to increase, this won’t deter the younger generation from getting onto the property ladder as is recommended to do as soon as possible.
