This is a sponsored guest post about real estate prices in the UK. I thought it was interesting to compare it to the market in Los Angeles, where prices are lower than they were at their peak a few years ago … but I’ve been hearing that we’re in such a desirable market that it’s still mostly a seller’s market. Read CFO’s full disclosure here.
In June the Rightmove House Price Index released figures for the previous six months which showed that the average UK property price in 2013 had now surpassed the landmark figure of £250,000 for the first time. In the last month the average price increased by 1.2% up to £252,798.
The London property market has been showing significant increase in the volume and value of residential property sales over the last year and now the rest of the UK, even the north has followed suit, ignoring any traditional north-south divide when it comes to the property market.
Properties in North England have had a 9.2% increase in the average asking price whereas the South of England has had a 10.6% increase.
In real terms though, once inflation has been taken into account, housing prices, especially in the North of England are still typically 20% lower than what they were prior to the property market crash in 2008. This does lead many to ask the all-important question; what does this mean for the property market now? A consistent increase in the average property prices across the country combined with an increase in the actual volume of properties being sold does create increased confidence in the property market as a whole but it is still generally an unknown as to whether this will continue throughout the remainder of 2013 and into 2014.
It is suggested that the source of some of this increase in activity and confidence in the property market are schemes such as the government’s ‘Help to Buy’ scheme and the ‘Funding for Lending’ scheme. These have opened up the property market to first time buyers with low deposits and led to more competitive mortgage products being introduced to the market. This increased competition and choice across the lenders however may be difficult for consumers, especially when it comes to choosing the most suitable mortgage for their individual needs and mortgage advice should always be sought prior to making any decisions.