UK house prices have shown an upward trend once again, bringing renewed optimism to the housing market. The decline in the property industry, has been halted by the announcement that prices rose by 1.1% during the past month of June.
In fact, during the three months prior to June, the figures were 2.8% above those recorded at the same time last year. Although growth rates may continue to vary, the standard cost of a property increased some £2,590, to an average of £211,301. During May this year, the percentage rise was 3.1% up from 2.1%.
Rises in London properties have been slow, but continue upward, by 1.2% yearly. In the south, and particularly the south east, prices have risen modestly, and are more in line with other regions of the country.
Both London and the south east have long been popular areas to invest in property. This trend is likely to continue, albeit at a slower pace in the present political climate.
Percentage variations in different parts of the country look likely to shrink. East Anglia recorded the highest annual growth at 5%, whilst the north only saw a 1% rise, the smallest division ever recorded.
Jonathan Hopper, Managing Director at Garrington Property Finders, and former council member of the UK’s National Association of Estate Agents, says that slowly rising house prices in the capital would have been unheard of in the past. But growth is now more evenly spread, although there will always be popular hotspots, as demand continues.
One factor contributing to price rises is the shortfall in the number of new properties being built. With fewer houses for sale or rent, but a never ceasing demand, house prices will undoubtedly continue to rise.
This year, a further increase in property prices is expected. Howard Archer, chief economic advisor, says that reasonable monthly performances show that house prices look likely to rise by 2% over 2017.
National averages at present tend to mask the situation, especially at opposite ends of the market. But with increasing attention from first time buyers, interest from abroad, and the need for business relocation, the UK’s property market is likely to always be healthily active.
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