Welcome, you’re arrived at the Experience Invest blog. We work hard to keep you abreast of the latest UK residential and commercial property market news and analysis. New figures have indicated to us that average English and Welsh house prices are fast approaching £300,000.
Figures from the Office for National Statistics suggest that the current average UK house price is £290,000. Meanwhile, the Town and Country Planning Association has stated that Britain needs to build 240,000 new homes every year until 2031 to meet current demand for residential property.
High demand, coupled with low supply, has forced many first time buyers in the UK to rent while waiting to get onto the property ladder. Newspaper The Independent reports that research from the Association of Residential Letting Agents shows first time UK buyers have already spent an average of £52,900 on rent, as of 2016. On average, London buyers now spend £68,300 on rent before purchasing a residential property and 20% of UK tenants don’t believe they’ll ever get onto the property ladder.
Rising house prices
A new study from online real estate firm Rightmove suggests that average house prices will soon hit £300,000. According to the research, the average price of a house in England and Wales rose by 2.9% to £299,287 in February 2016 – the highest increase since October 2015.
Commenting on these figures Rightmove director Miles Shipside said: “The new year’s market has hit the ground running in many locations, continuing last year’s momentum and resulting in the price of property coming to the market hitting a new high.” However, the research found that there was a 5% rise in the number of new residential properties on the market when compared to the same period last year and the supply of units for first time buyers increased by almost 10% In February 2016.
Yet residential housing supply varies by region. Supply of new properties coming to the market was higher than the national average of 5% in London, the South East, the South West and Yorkshire. Supply actually decreased in the West Midlands, meaning that it’s now harder for first time buyers in the region to find a residential property.
Explaining these figures Robert Scott-Lee, managing director of Chancellors estate agents said: “January has seen a huge jump in demand that has surpassed the normal seasonal increase… Undoubtedly, this is partly fuelled by investors looking to take advantage of a quick purchase before the tax change in April, and sellers looking to secure a sale to an investor who is panic buying.”
Experience Invest is a London-based independent property company specialising in residential investments, student property and care home investments. The company operates across the UK and internationally, and is regularly featured in the property news – see The Telegraph, on Yahoo Finance, and by Reuters for examples of recent articles.
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