The north-east of England is home to a rapidly rising housing market according to property website Rightmove. Experience Invest have recently seen the mainstream media compare rising prices in the north-east with a drop in prices in London’s Kensington and Chelsea.
Prices in these two popular London boroughs fell by 7.2 per cent in July, while the north-east recorded its biggest month on month rise of house prices, at 2.1 per cent. Rightmove said that overall the monthly figures for July had been ‘volatile’.
Monthly fluctuations don’t impact the overall annual figure for London house prices where we’re seeing a rise of 7.8 per cent over the year to date. Many areas of the capital which were seen as unpopular are now catching up with their neighbours in the terms of house price gains. Areas such as Redbridge, Waltham Forest, Hillingdon and Merton, recorded gains of up to 15% over the year, while other popular London areas have seen some stagnation in the market.
The average house price in England and Wales stands at £294,542 and Rightmove have observed that overall there has been a drop in the number of homes currently on the market. The biggest drop off in housing stock comes at the first time buyer level with a lack of two-bedroom flats and smaller homes.
Homes at lowest level
A recent report by RICS revealed that homes for sale where actually at their lowest level since records began in 1978. A lack of available housing stock sometimes triggers a cycle of individuals and families not moving through lack of choice, and this leads to even more scarcity of housing available on the market.
Changes to the Bank of England policy on interest rates and recent announcements made by Mark Carney, could see many people who have owned a home for the last eight years now begin to see a steady rise in interest rates. While the rates will only be raised slowly this could see the market adjust itself again as rates return to pre-recession levels over the longer term. To keep up-to-date with this story please follow Experience Invest on Twitter.
Experience Invest have been trading since 2004 and we’ve worked with all types of investors from first timers to high-NET-worth individuals and corporate clients. As market leaders in UK residential investments, we specialise in high demand, high yield property investments. For more information, or to discuss your own investments needs please contact Experience Invest.