Property prices in all regions of the UK grow at the fastest annual pace seen in seven years
The first of two stories about housing – continuing the slightly depressing theme of unaffordable rural house prices. It ties very interestingly into our preceding story about falling unemployment particularly amongst the young and leaves us with the rural dwellers consideration of where those of in our communities who are finding work in increasing numbers are likely to live. My gut reaction is that they will continue to be diverted into towns in the context of house prices rises of this scale. It tells us:
House prices in every region of the UK have increased this year, further raising concerns that a generation of young people will fail to get on to the property ladder.
New figures from the Office for National Statistics have revealed the average UK price is now £272,000, up 11 per cent from £245,000 while the gap between house prices in the capital and the rest of the UK continues to grow.
The growth surge in July was at the fastest annual pace seen in seven years.
The average London house now costs £514,000 – up £15,000 in a month and £76,000 on a year earlier, according to July figures from the ONS.
The typical starter home is 13.5 per cent more expensive than it was a year ago and the biggest annual increase recorded since March 2005.
Critics believe a generation of young people’s dreams will go unrealised as they continue to live in their childhood bedrooms.
“This shocking rise in house prices leaves even more people priced out of a stable home,” said Shelter’s chief executive, Campbell Robb.
“The dream of their own home is slipping so far out of reach for young people and families across the country, the only choice they face is to become part of the ‘clipped- wing generation’ stuck living in their childhood bedrooms, or ‘generation rent’ paying out dead money to landlords.”
Average earnings are £24,648 a year and have been rising at just 1.7 per cent.
An English home is worth £284,000, up from £255,000 and a Scottish property has climbed to £198,000 from £183,000. The Welsh average is £171,000, up from £160,000 and Northern Ireland is £139,000, up from £132,000.
Those looking to buy in London face increasingly high stamp duty charges because the tax rate jumps from 3 per cent to 4 per cent for purchases above £500,000. Figures released by the Council of Mortgage Lenders (CML) last week showed that the number of mortgages handed out to first-time buyers passed 30,000 in July, marking the first time this has happened during a one-month period since August 2007.