According to the first significant UK house price report published in 2017, prices are continuing to rise by almost 6.5% on average in the first month of the year.
The Office for National Statistics (ONS) data shows that the average UK house price was £218,000 in the first month of the year, £13,000 higher than January 2016 and £1,000 up on December.
Industry commentators point to continuing supply issues, which are fuelling price rises. Legal and General Mortgage Club director, Jeremy Duncombe, says: “As house prices begin 2017 on an upwards curve, our country’s housing problem continues to worsen. Despite record low interest rates, the latest ONS figures show that average house prices in England & Wales have now reached 7.6 times more than average earnings. This gap is only going to widen if prices continue to follow this trend, preventing many from taking their first steps onto the property ladder.
“The root of this ongoing problem lies with supply not being able to keep up with demand. To put it simply, we are not building enough homes. Although the Government’s recent Housing White Paper promised change, we need to start seeing these promises being delivered against. It is vital we start addressing these problems head on and find a workable solution to this major issue.”
England was the main contributor to the increase, where the average price was £235,000 in January, up 6.5 per cent year-on year.
On a regional basis, London continued to be the region with the highest average house price at £491,000, followed by the South East and the East of England, which stand at £319,000 and £279,000 respectively. The lowest average price continues to be in the North East at £124,000.
As the report states, lenders’ rates remain at historically low levels, and those looking to take out a mortgage or remortgage are in a strong position to secure a 95% loan to value deal from 2.69% fixed for two years, which will prove a very attractive proposition for many families.
If you would like to speak about your mortgage or re-mortgage, and secure one of the record low deals that are currently available, please feel call Steve Padgham on 020 8614 4782 or email Steve.Padgham@fpgonline.co.uk