In September 2019, The Office for National Statistics reported that house prices across the UK saw a year-on-year rise of 1.3 per cent. Annual growth has declined in the last few years, yet the fact that there has been any growth at all during these years of political stagnation is very encouraging. If the trend continues, the average home in the UK will increase in value by over £3,000 in the next year. But what's in store for Leeds?
Since 2013, the UK has been experiencing ’strong growth', and a typical house price is now higher than it was four years ago. Surprisingly, it's the areas outside of London that have seen the highest growth, with the East of England experiencing price increases of 11.3 per cent in the last year. With the majority of the UK seeing such positive growth signs, the future of the residential property market looks good.
Over the last decade, local prices have seen a rise of 15.3 per cent, equivalent to £3,570 per year. Terraces tell a different story, having seen a rise of £2,450 per year or 13 per cent over the period. As the chart shows, all owners have benefitted from price rises, but some more than others.
The hike in house prices indicates good news for current homeowners, but those hoping to take their first steps on the property ladder will need to familiarise themselves with pros and cons of current schemes. There are several government schemes for first-time buyers: Help to Buy, Shared Ownership, ISA's and Starter Homes.
With the continuing increase in house prices, it will make more sense for some people to rent. This is excellent news for buy-to-let landlords and potential investors thinking about purchasing a rental property. Rental prices have also increased over the last 12 months, with the average rents nationwide up 6.5% with a mean average of £839 per month.
Local area residents thinking of selling their home will be buoyed by the price increases, especially if they have owned their property for a significant amount of time. If you would like to know how much your home is worth don't hesitate to give us a call. Alternatively, pop into our office for a friendly chat through your options.
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