Property has traditionally been viewed as a sensible investment with a guaranteed return. Despite falling in the wake of the global financial crisis of 2008/09, house prices have since resumed a steady growth over the past few years. But just how significant is this increase? And how much could your house actually be worth? Read on to find out more…
House price growth increases
According to figures from the Office for National Statistics (ONS), house prices rose by 5.8% in February, up from 5.3% in January. That means the average price of a UK home has risen to a record high of £217,502.
The government figures coincide with the Council of Mortgage Lenders’ (CML’s) announcement that gross mortgage lending increased by 19% in March to £21.4 billion. Although the total was well short of the £26.3 billion lent in March 2016, this decline was anticipated due to the rush in borrowing activity seen last year as buyers strived to avoid the second property stamp duty deadline, which came into effect last April.
CML senior economist Mohammad Jamei said there has been a shift away from buy-to-let investors and home-movers, toward remortgage activity and first-time buyers.
“We expect this profile to continue over the short term, as low mortgage rates encourage existing borrowers to remortgage and government schemes help first-time buyers. We do not expect any marked effect from the general election,” he added.
Which regions saw the biggest changes in house prices?
Across the UK, England was the biggest contributor to the upturn. House prices in England rose by 6.3% year on year in February to £234,000, followed by Northern Ireland (+5.7%), Scotland (+3.1%) and Wales (+1.8%).
Unsurprisingly, house price growth varied from region to region. The ONS figures show that the East of England saw the biggest increase, rising by 10.3% in the year to February. The East and West Midlands came in second and third position, with growth of 7.5% and 7.0% respectively. Growth was far slower in the North-East (2.2%) and London (3.7%).
Despite these changes, London remains far and away the most expensive place to buy a house in England. The average London house price now stands at £475,000, well ahead of the South-East (£312,000) and the East of England (£282,000). The North-East remains the cheapest place in England to buy a house, with the average property now costing just £177,000.
How to find the value of your house
Wondering how these changes may have affected the value of your own property? Chancellors offers a free instant online valuation service, which is the ideal first step for anyone thinking about selling their property. We’ll give you an estimate of how much your house could be worth, as well as the average price of properties in your area.
Looking for more information? With a free market appraisal, we’ll send one of our experts to visit your home and carry out a detailed assessment, taking into account the local area, the sale price of similar properties nearby, and the condition of your house. You’ll also find out about the steps we take to secure the best price for your property within your ideal timescale.
Thinking of putting your property on the market? Find out why you should choose Chancellors to sell your house.