House prices increase by 1% in November, meaning consecutive increases for five

House prices increase by 1% in November, meaning consecutive increases for five months.

According to Halifax this week, the average UK house price now has a reached a record high of £272,992. This means a monthly change of +1% with a quarterly change of +3.4% and an annual change of +8.2% and for the first time, the average price of a property in Wales was above the £200,000 mark, therefore, over the past twelve months on average homes in the UK have increased by £20,000. In the period following lockdown until now, prices have increased by around £1,691 a month, which works out at £33,816 in this timeframe.

This high increase in just over 18 months is due to a range of different incentives which include low levels of stock with a large increase of buyers compared to sellers, lower mortgage rates and lower deposits needed for a mortgage, therefore, these have helped all types of buyers including first time buyers.

On average across the UK, flats have increased by 10.8% annually compared to 6.6% for detached homes. This could be that over the past six months, homeowners have returned to working from the office rather than at home so back in urban areas i.e London. At first, we saw a large race for space, which saw areas like London have a small decrease in property prices compared to rural areas where homeowners and renters could get more space for their money.

As we go into 2022, there is uncertainty on what will happen within the property market. There is a high expectation for buyer demand and influx following Boxing Day but with interest rates also expected to rise, there is uncertainty to how this will affect those wanting a mortgage. It is imperative to speak to an agent about the local market to see what is going on in your area as these statistics are only as the UK on average. If you have any questions about Kent, call Distinctive Homes today on 03309 125285.

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