UK Housing Values Increase
At their highest growth rate since July 2010, UK housing saw 0.9 percent increased prices in the month of September. This increase also shows a five percent gain from housing prices the previous year.
Throughout most of the UK, home prices are still well below peak 2007 values; however in London, home values are at an all-time high. Eight percent above 2007 peak values, the average home in London is valued at £331,338. This is not the case in many parts of the UK, where on average home values are eight percent below peak values, although all 13 regions experienced price growth in the third quarter of 2013.
Improvements in the economic climate are playing a part in housing gains and increased sales, as well. As the UK housing recovery is gaining steam, first-time buyers are also gaining confidence. With mortgage rates at extremely low levels, the average price for a first-time mortgage is about 29 percent of total earned income.
Quarterly, the average home value across the UK rose by 2.2 percent. This figure represents a 4.3 percent increase as compared to the third quarter of 2012. Overall, values in Wales increased by 2.6 percent, Scotland up 1.5, Northern Ireland up 0.9, while Northern England underperformed the South of England due to London's double-digit increases.
These kinds of gains are sure to get UK housing back on track and the economy to a more stable recovery pace. How will these figures change your approach to the UK housing market, if at all? Are you seeing this trend in your local market?
Let us know in the comment section below. We welcome your opinions and would love to start a dialogue.
Photo Courtesy of Johnny English’s Flickr