Property prices in London increased by 4 times in 20 years. Report The Halifax

Prices for residential property in the UK rose 0.4% in July, but if you look at the period from may to July fell 0.2%, and the year the growth amounted to only 2.1%.

Data from the financial group Halifax show that the average price of an apartment or house in the UK has now reached £219266 and analysis of the data suggests that the market is still growing, but much slower than I would like. Such low growth rates observed for the last time in April 2013, when annual growth was 2%, and the fastest annual growth at 10% was shown in March 2016.

Prices in July 2017 10% above their peaks in August 2007 and 42% above their low in April 2009, when the average price was £154663.

London continues to dominate among other cities, the pace of rising prices, and continues to be the most expensive city per square meter. The average price of a UK house increased by 236% over the last 20 years from £672 in 1997 to £2260 , property prices in London increased by 402% during the same time. The fastest growing was the London district of Hackney, where prices for one square meter of housing increased from £814 to £6942, or 753%, which is almost two times more than the average for London.

Now the market prices of real estate in the UK are in a sideways motion, almost without change. Representatives of real estate agencies are in suspense – “Where will move the market?”. Despite the very good statistics from the labor market – the number of jobs increased by 175000, and the unemployment rate reached 4.5% (the lowest level since 1975) , the income of Britons grow very slowly. Thus, the rate of wage growth is far behind growth in consumer prices. The outbreak of inflation cause people to save more, postponing the purchase of real estate by the wayside.

Modest expectations of the sellers are based on historically low interest rates on mortgage loans and increasing housing shortage.

However, it is necessary to consider that the market of real estate in the UK has shown resilience and survived the economic shake-up in connection with the Brexit, the increase in stamp duty and political uncertainty, which has caused the sudden election to the Parliament.

® Alice Morgan. 08.08.2017 G.

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