Halifax data shows that the average UK property price hits a new record high of £276,091. Bank analysts say this is the most significant annual cash rise since March 2003, and it was unexpected by many a year before. However, the growth will most probably slow during 2022.
Several factors added up to a record house price inflation: progressive lack of availability of homes for sale, the shallow threshold for the first-time buyers to step on the property ladder, long Stamp Duty holidays, and historically low mortgage rates.
Data reveals considerable variation in regional average home prices—the fastest and most significant price rise registered in Wales (14.5%). Northern Ireland delivered 10.5% growth. England North West (11.8%) performs stronger than South West.
House prices in London were up 2.9% in December, but overall annual inflation of 2.1% leaves the capital city the weakest performing region in the UK.
Zoopla portal data reveal that the number of UK-based first-time buyers hit 20 years high. More than 400 000 British families bought their first home during the last year. In addition, people boosted their cash reserves due to a lack of spending opportunities during the lockdowns.
There are now more than 300 mortgages available to buyers borrowing as much as 95% of their home's value, while interest rates on these products have fallen to a record low. In addition, first-time buyers can take out a Lifetime ISA, into which they can save £4,000 a year, which the government tops up with a 25% bonus, up to a maximum of £1,000 annually. This unique combination of factors should have helped more families to buy homes. However, this commodity is in short supply.
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.
