This week, the property industry welcomed the release of two timely reports uncovering the current state of the housing market. Nationwide’s House Price Index – a monthly report charting house prices – revealed that the average house price in the UK now stands at £209,998. This index comes at a critical time for the UK property market as it adjusts to the first rise in interest rates in over a decade. Speaking with The Express, The Negotiator and Property Reporter, CEO Paresh Raja explained why this was an impressive result, demonstrating the resilience of property in times of economic and political change.
In addition to this, a new report by Halifax also revealed that the total value of the UK housing stock has now soared past £6 trillion — a 48% increase on 2007’s figures. The same report showed that London properties are now worth a combined £1.338 trillion — more than the value of all houses in Scotland, Wales, and the North of England combined.
Over the past decade, property values have soared because of rising demand for private housing outpacing the number of available houses on the market. While house prices may be rising, the rate of actual price growth has been stalling, reflecting the market’s current shortage of affordable housing. With inflation outpacing price growth, a significant number of prospective homebuyers are not able to act on their property intentions.
In part, this explains why the Government has removed stamp duty for first time homebuyers; alleviating some of the financial burden affecting entry-level investors so that more people are able to get their foot on the property ladder. The ability for investors to access finance will also be important, and MFS will continue to offer tailored bridging solutions for those seeking their next property investment.