Over the last year, the once unstable housing market has seen a surprising upswing, a big change from the end of the housing boom back in 2007. According to recent data from Rightmove, the average home price in the UK has surpassed £250,000 for the first time.
Rightmove’s June report shows the average property asking price was £252,798, nearly £3,000 up from the previous month, marking a 1.2% rise. Looking at the past year, there’s been a 2.7% increase, suggesting that the housing market regained some stability in 2013 after dealing with lots of ups and downs. However, there are big differences depending on the region, with London and the South East seeing higher prices.
In southern UK, house prices are generally much higher than the national average. For instance, in London, the average house price is £515,243, while in the South East, it’s around £329,968. Prices in the South East grew by 1.4% last month, but not all regions are seeing this kind of growth. In Yorkshire and Humberside, the average house price actually dropped by 0.5% in June to £157,183. The North saw a small decrease of 0.3%, whereas the North West, including places like Lancashire, Cheshire, Greater Manchester, and Merseyside, had a notable 1.7% increase.
While rising house prices might seem like good news for sellers, it can be tough for first-time buyers because of the high costs, which can reduce demand. This can make it challenging for homeowners with expensive properties to sell.
Affordability of mortgages is a major factor for many who want to buy a home. Even though low interest rates can make some mortgage deals attractive, getting a long-term financial agreement is still tough. However, the Yorkshire Building Society mentioned that it’s still possible to find a good fixed-rate mortgage. They observed that borrowers are leaning towards longer-term fixed-rate mortgages, which led them to introduce a 10-year fixed-rate mortgage to offer long-term stability.
Saving for a deposit might seem difficult, but fixed-rate mortgages can help by keeping monthly interest rates stable. This might be the right option for those who can afford a deposit but don’t want to deal with changing interest rates each month. However, finding an affordable home is the first challenge, and given the current trends in the housing market, this could be quite difficult.