UK house prices rise by an average £36,000 in just 12-months
The average cost of a home in the UK has risen by £36,000 in just 12-months, according to official figures, as homeownership falls further out of reach for many.
The jump is more than the average Brits’ annual salary, and comes at a time when rising mortgage rates are acting as yet another barrier to those looking to get on the property ladder.
UK house prices increased 13.6 per cent to an average £296,000 in August, the Office for National Statistics revealed today. The average cost of a property in England alone is even higher, standing at £316,000.
London, which hosts the highest average house price in England, recorded the lowest annual price growth of any region at 8.6 per cent, a signal that “growth is stabilising across the capital”, Nick Leeming, chairman of estate agents Jackson-Stops, said.
“A recurring theme of Jeremy Hunt’s emergency statement this week was the need for stability and a sense that a challenging road was ahead. The need for stability is something that the property market understands only too well.”
“This data is a little historic, particularly in light of political and economic events following the mini-budget, but shows the continued rebalancing of the market with average house price growth slowing,” the CEO of property site OnTheMarket, Jason Tebb, added.
“Even with the recent stamp duty reductions, buyers have less buying power so sellers would be wise to take advice from an experienced local agent who can give an achievable valuation. New properties coming to market which are not priced realistically may struggle to generate interest.”
An increasing number of younger Brits are continuing to rent instead of buying their first home.
The rising demand paired with rising inflation – which hit double digits yet again last month – has seen landlords hiking rents.
Private rental prices paid by tenants in the UK has risen by 3.6 per cent in the 12 months to September 2022, up from 3.4 per cent in August.
Rental costs in London grew 2.8 per cent in London, as reports of city dwellers being pushed out of the capital rise.