Comments : Property values on the rise once more!
According to Halifax the value of flats in Britain are currently averaging £180,799, an increase of £394 per month over the last 10 years from £133,483. The next largest increase in property values are terrace houses with a 32% rise then detached houses with a 17% rise. Both types of property have an average value of over £200,000 but flats and terrace houses are by far the best performers in all regions except for the West Midlands where bungalows outperformed all other properties and the South East where semidetached properties performed better.
London has the highest average price for flats at £286,993 even though flats are the cheapest type of property in the hole of London and comparing the price to a typical semidetached property in the North of England of between £130,000 to £140,000 London is in a league of its own.
According to the Office of National Statistics house prices across England are at a record high however, this is not a true reflection because of London and the South East regions having distinctly higher house prices than the rest of the country.
A good example of this would be that in a year London’s house prices rose by 9.7% but there were falls of 2% experienced in Scotland and 0.7% falls in house prices experienced in Wales over the same year. If the areas mentioned were left out the average rise experienced by the rest of the UK is only 0.8%.
However, according to Halifax you could be £875 a year better off if you purchase a property in the UK rather than rent because the average monthly rent for a three bedroom house in June is £745 but you could pay £672 on a mortgage for the same property. This is a whole 10% lower but figures haven’t always been like this…
Back in June 2008 the average cost of owning a home was £352 which was 49% higher than the cost of renting according to Halifax. The reason for this reverse in figures is the availability of affordable housing along with more affordable mortgage rates which have fallen from 5.88% in June 2008 to 2.57% in June 2013.
There are two exceptions to this statement that house buying is more affordable than renting, Yorkshire and the Humber and Wales where renting is 1% lower than the average monthly cost of a mortgage. House prices are expected to rise according to the Centre for Economics and Business Research who estimates that house prices will rise 27% by 2018. This would mean the average UK house price would be at a record high of £225,000!
Do you think house prices will rise by the forecast 27% or do you think someone is being a little too optimistic?
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