Taylor Scott International News
Home values in England and Wales rose by 0.2% in January taking the average house price above £290,000, the latest price index shows. ss England and Wales. Last June, average prices crossed the £280,000 marker, but we have to go back to August 2014 for the crossing of the £270,000 threshold’ said Adrian Gill, director of Reeds Rains and Your Move estate agents. ‘We’re now passing these milestones in quicker and quicker succession, as prices pick up pace. This hastening is good news for home owners, but means it’s getting harder for those still hoping for home ownership. In the last 12 months there’s been a 5.5% upswing in average property prices compared to just a 2.1% rise in average earnings,’ he pointed out. However, he also pointed out that aspiring buyers now have much more support to help get a foothold on the ladder, with the launch of the Help to Buy ISA in December and the new Starter Homes scheme this year. ‘But in the long term there has to be a huge breakthrough in house building if we’re going meet the growing demand for homes and keep house price growth sensible,’ added Gill. The analysis of the data says that while the South East remains the region with the fastest year on year price rise at 7.7%, London has now moved to second place. The typical property in London has increased in value by £34,485 in the last year, almost equal to the £35,333 median gross annual earnings in the capital. Gill explained that this 6.2% rise in the capital’s home values has been driven by activity in the more affordable outer boroughs. The cheapest 11 boroughs have seen the biggest boost in property prices, up 14% or £47,052 year on year, with a typical home in Newham now costing £63,429 or 23% more than in December 2014. ‘As London workers attempt to find affordable places to buy, prices are rising in the nearby commuter towns as well. The fastest growth year on year across the country has been experienced in Luton where home values are up 17.5%, with trains here only taking 23 minutes to get into St Pancras Station,’ said Gill. He also said that while home sales saw the usual seasonal slump in January, falling 26% from the previous month’s level, this is better than expected, with sales typically dropping by 28% between these two months. ‘Regionally, there has been a significant upswing in sales in the North West, rising 8.8% in the last quarter of 2015, compared to the same period in 2014. We are now seeing faster growth in sales in lower-priced areas, as buyers seek more property for their money,’ Gill explained. He also said that when looking at the type of property selling successfully, there has been a turnaround in the trend seen in recent years. Sales of detached homes are now rising fastest, up 5%… Taylor Scott International
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