Property Prices in Great Britain Hit New Record High

The average house price in the United Kingdom has risen to a record high of £380k. This has seen it increase for two months in a row between April and May, an improvement of 0.6%. It is also the fifth consecutive year in which house prices have set records in the month. So why are property prices continuing to increase? 

Prices Continue to Rise 

Part of this rise may have been down to a very busy opening quarter. Many buyers raced to get sales pushed through before a stamp duty stamp duty increase from the United Kingdom’s Government, which would have left many people paying more in tax. This led to an overly stimulating start to the year. 
 
Even with news of rising prices, the 0.6% monthly increase in May was still the smallest in this month since 2016. With the number of homes for sale at its highest, it also signifies that there is a buyer’s market in the air. Those looking to buy a home can shop around and spend their time doing so.  
 
While average prices increased, buying activity did not. Yet before the end of the year, there are predictions prices will grow. The major estate agents are tagging this at between 2.5% all the way up to 4%.

Selling a Home in Spring 

Another reason property prices may have increased is that spring months are typically the busiest times for sales anyway. The winter is over, and sellers see it as a good time to sell, as their houses look better in the sunnier weather with gardens in bloom. 
 
Selling at this time of year also gives people plenty of time to keep their home on the market throughout summer and try to get the best offers. The United Kingdom now has a great array of services and thousands of people are able to say, “I managed to sell my house with We Buy Any Home”. The fast sales they offer also contribute to the liquidity of the market. These agents will offer cash for any home. With guaranteed sales and easy-to-choose completion dates, agents like this allow those who already have a property to move quickly should they not get offers fast enough. 

Global Investors Still Attracted to the UK Property Market

Source: Pexels

A further reason property prices are continuing to climb could be that the UK still attracts significant foreign investment. This has been noticed in a rise in property prices in London, which are below the £5 million mark. These high-value properties have had a 7% increase in sales. Yet above this threshold, the price drops dramatically to a 6% increase. Changes to tariffs and a trade deal with the United States have also prompted a positive economic outlook for the United Kingdom. As well as attracting those from other countries, this has meant the Bank of England has the ability to lower rates which will allow more mortgages, increasing the buyer pool. 

For buyers, now is a great time to start the home-owning journey. Interest rates are low, the market has plenty of houses to buy, and these investments are set to increase. If a person is not in a chain, then they will have a distinct advantage and may be able to still find a bargain.