Data just released from the Land Registry shows that the average price of a property in the UK is now £218,964 after a rise of some 8.4 per cent over the past year.
In August alone - the latest data used by the Registry - the average property price rose 1.3 per cent
The Registry says housing market indicators until the end of summer suggested relative stability with demand and supply in August broadly unchanged from the month before - although economic indicators were “somewhat weaker than in 2015 and early 2016.”
Across the UK regions the largest growth - 13.3 per cent in one year - was recorded in the East of England, with 12.2 per cent in the south east and 12.1 per cent in Greater London.
However, some consultancies are beginning to warn of Brexit-inspired trouble for the housing market leading to low or negative price growth in 2017.
PwC says some areas of central London are experiencing weaker growth following the EU referendum vote. House prices in Camden, Kensington and Chelsea and Hammersmith and Fulham have all grown less than two per cent over the past year compared to 12.1 per cent for London as a whole.
“We project that average UK house price growth for 2016 will be over five per cent but will cool to around one per cent in 2017 in response to slower expected economic growth next year” says PwC economist Thomas Fisher.
Meanwhile the EY Item Club - the only non-governmental business consultancy to use the Treasury’s economic model to forecast economic changes - says house prices across the UK will dip 0.2 per cent next year as a result of Brexit uncertainty.
"Sterling's shaky performance this month provides a timely reminder that challenges lie ahead. As inflation returns over the winter it will squeeze household incomes and spending. The pressure on consumers and the cautious approach to spending by businesses mean that the UK is facing a period of relatively low growth," warns Item Club chief economic advisor Peter Spencer.
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Please give me your honest comment. I am about to open a new agency, all based on customer service throughout the transaction. Not high street but a local office for customers, a very strong brand and a concept/ usp that is very different to local agents but our fees will not be basement. Do you think that opening now is sensible or when indeed is sensible?? All I know is CW haart Connell all keep going in the town (how??) but no one ever recommends any of the agents locally and I feel there is still a gap for quality.
Here at Expert Agent we help quite a few new start-up businesses with their technology and websites, some of which have a local non high street office, on the whole most of them are still trading after 12 months, hope that helps.
2020 - property prices still rising.
2030 - property prices still rising.
2040 - property prices rise to astronomical levels.
If the fundamentals of the property market in the UK stay the same, the situation isn't changing anytime soon. Prices will just continue to rise, endlessly. The government say they are interested in affordable homes and rents, but that's all just lip-service.
Expect the average price to reach £300,000 before too long.
Dear Pete Jones, it depends where you are located. Looking at Rightmove yesterday, in the past 14 days purlebricks have loaded 245 properties, almost 16 per day. Nothing west of Bristol and north of watford that I saw.
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