The UK’s house prices have now risen 15 quarters in a row and are now up some 36.6% since the height of the financial crisis in the spring of 2009, writes property developer Richard Carr.
Can house price increases ever be moderated?
During the second quarter of 2016 house prices in the United Kingdom increased by 1.8% on the previous three months and a massive 8.5% based on the same period a year earlier.
As a result, the typical house price of a standardised UK property rose to a record figure of £215,582 from £211,868.
Despite the country wide increase, there’s still huge disparity throughout the regions. For example, London house prices have increased more than double the UK average and nearly four times greater than in Northern Ireland.
New figures suggest that one out of every five homes in the UK’s capital city of London is worth at least £1m, writes property developer Richard Carr.
Expensive housing market
London is the UK’s most populous and crowded city. People from around the world flock to London because it is the heart of the UK’s economy, as well as a premier global financial and technology hub. There is an increasingly strong demand for a dwindling supply of living spaces in London, meaning that its average house prices have experienced extraordinary growth in the past few years.
The latest index from the Office for National Statistics (ONS) reports that the average London house price grew by 14.5% in the year to April 2016. The ONS has implemented a new formula to determine its average UK residential property values, so the average London house price is actually lower for April (£470,000) than it was in March under the old system (£552,000). Despite this change, average London residential real estate values continue to hover around the half million mark.