The average price of a house in the UK has broken the £200,000 barrier, the highest recorded price in over three years, according to new research. It is an increase in new buyers that is pushing up property prices, says the study from the Sequence Group which covers 300 branches nationwide including Barnard Marcus, Fox & Sons and H Brown.
Prices reached a new high of £200,080, up 0.3% on the previous quarter and 6% annually. London house prices stabilise at £378,196, down 2% from June but up 2% annually. The data also shows that the current appetite for home ownership continues with UK buyer registrations up 16% on last year and a record 48% in London. This is reflected in an increase in mortgage applications which are up 26% year on year with first time buyer applications up 31% annually.
Sales are also up and property sales transactions increased by 20% annually in the UK and 17% in London. ‘The UK is on the mend and the property market has played its part in facilitating that recovery. The UK’s housing market has gone from strength to strength over the last three years, but the growth has been gradual and consistent which gives confidence to economists and property professionals alike that it isn’t overheating,’ said David Plumtree, chief executive at Barnard Marcus.
Quote from PropertyForum.com : “At a time when many experts across the UK property sector are highlighting the potential risk of a housing bubble in certain areas of the country, Mark Carney, the Governor of the Bank of England, has joined the conversation.”
‘Property prices are continuing to rise because of demand increasing at double the rate of supply, 16% against 7% annually. Also an increasing number of new mortgage products available are allowing buyers to meet these rising prices,’ he explained.
Despite a drop of 2% in London house prices on the month, London’s prices are still up by 2% since the beginning of the year. ‘Renewed demand is keeping prices up, with buyer registrations increasing by 48% annually, triple the rate of new instructions, which is up just 16% annually,’ added Plumtree. A separate piece of research shows that the average age of a second time buyer is now 42 and those currently living in their first home took their first step onto the property ladder at the age of 28, but expect to wait a further 14 years before climbing onto the second rung.
The research from the Post Office also shows that those who have already made this leap and are currently second time property owners did so at the age of 34, a head start of eight years. In the mid-1960s, second time buyers had to wait just three years before moving on from their first home as the average age of a first time buyer between 1965 and 1969 was 25, moving onto their second home at the age of 28. However, in recent years, this gap has climbed to nine years. The average age of a first time buyer between 2010 and 2013 was 30, moving onto their second home at the age of 39.
Prospective second time buyers would be encouraged to move if house prices were to fall with 60% saying so and 45% would be swayed if they found their dream home. Some 41% could be charmed into moving by competitive mortgage rates, while 25% would be led by their relationship and consider moving up if they had plans to get married or start a family. ‘Taking that all important step onto the housing ladder sometimes seems like the biggest hurdle a home buyer will face. However, we can see that it doesn’t get any easier as people try to move up the property ladder and second time buyers can face their own set of challenges,’ said John Willcock, head of mortgages at the Post Office.
‘Second time buyers now expect to wait until they are in their 40s before moving on from their starter home, perhaps having to put on hold placing their roots or building a family home for years to come,’ he added.