Despite the troublesome last 24 months, the British property market is healthy and shows growth. About 12 million homes have increased in value by £49,000 or more over the previous five years.
- The total value of British homes has soared by 20% – £1.6 trillion – in the past five years.
- The average UK property rose in value by more than £49,000 since 2016
- The value of Britain’s homes now totals £9.2tn – four times the UK’s GDP.
Rent increases have achieved a 13-year high. Moreover, for the first time in a year, London rents rose. The demand for property doubles in the central areas of major UK cities.
The typical cost of renting a home in the country, outside London, now stands at £809 per month, according to Zoopla Research latest Rental Market Report. Renters are returning to cities, but the rise in demand is not being met by increasing the supply of homes available to rent, pushing rents higher.
Demand in major cities such as Manchester, Leeds, and Edinburgh almost doubled in the three months to the end of September, compared with the last part of the year.
The most affordable area in the UK is Scotland.
New prospective buyers based outside of Scotland made up 18% of all those looking to buy property in Scotland in the first ten months of 2021. To compare, only 14% of such buyers completed purchases in the same period in 2019.
London-based buyers made up the largest share among buyers within that group, at 46% in the first ten months of 2021. This is a 15% increase, compared to the same period in 2019.
Buyers also return to their roots in other parts of the UK, including Yorkshire. Since the market re-opened, Yorkshire has enjoyed the most considerable increase in asking prices for two-bedroom flats and three-bedroom houses.
For example, the average asking price for a two-bedroom flat in Yorkshire rose 10% to £153,354 in the week beginning 28 September from £139,404 starting 18 May, data from OnTheMarket shows.
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