Property investments in the country returned significant growth by the end of the fall after the stamp duty holiday. As you shall see, house prices surged everywhere, except for some Scottish locations.
Annual house price growth hit a double-digit figure in November. According to the Nationwide Building Society, annual house price growth reached 10%. However, the leading UK property portal Zoopla is less optimistic and considers UK growth to be 6.9% by the end of October.
The average price of a UK house, according to Nationwide estimation, was £252,687 in November – nearly 15% higher than last year in March, when the pandemic event started. Zoopla estimation is more modest; it gives the average home value of £240 thousand by the end of October.
Apartment prices also rose in value, but not so fast. The average flat has been increased in value by 1.6% over the last year, just slightly above the five-year average of 1.2%. However, the annual growth in prices for all types of houses, from terraced to detached, is running at 8.3%, nearly double the five-year average growth rate of 4.2%.
Annual per cent change in house price by city, United Kingdom
|City||% change, yr|
Source: Zoopla Research
The supply of new properties on the market is declining, but a fresh inrush may start to rise at the turn of the year as households use the holiday period to decide on making a move.
In typical years, the highly seasonal supply of homes for sale slows before Christmas but rises sharply in the new year. On average, the collection of listings at the end of January is 50% larger than at the start of December.
The cost of living in the UK also increased accordingly. According to the Office for National Statistics (ONS), the increase in the cost of living achieved 4.2% growth in the year to October. As a result, the Bank of England has said it may have to raise interest rates in the “coming months” to tackle soaring costs.
With the recent decline in mortgage approvals, you may need a better consultant to negotiate low rates, as this is still possible. Oracle Capital Group is a specialist in residential and commercial property projects. The company has reliable partner relations with numerous banks, funds, and the other UK, EU, and overseas financial institutions. We find and negotiate the most favourable financing terms for your next property investment enterprise in the United Kingdom.