House prices rose by £ 22,000 last year
HOUSE prices show no signs of slowing down as average property values rose by more than £ 3,000 in May alone, according to the latest index.
The figures show that the value of the property rose 9.5% per year through May, reaching a record high of £ 261,743 on average, according to data from Halifax.
Across the UK, house prices rose 1.3% month-on-month, with inflation reaching its highest level in almost seven years.
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Russell Galley, Managing Director of Halifax, said: “House prices hit a new record in May, with the average home adding more than £ 3,000 (1.3%) to its value in the last month alone.
“A year after the first easing of national foreclosure restrictions and the gradual reopening of the housing market, annual growth has soared to 9.5%. ”
This means that the value of an average UK house has increased by over £ 22,000 in the past 12 months.
OVERVIEW: Our latest #HalifaxHPI📈 shows that market activity continued to be boosted by the government’s stamp duty holiday, with buyers rushing to complete their purchases in time to receive the maximum tax break before the June deadline.
Read more: https://t.co/ZuNU5tKVqz pic.twitter.com/hE34hVvO19
– Halifax Bank News (@HalifaxBankNews) June 7, 2021
As people rush to enter the real estate ladder and make the most of the buoyant market, the South is lagging behind in terms of inflation – an area in which it normally leads.
In the year since the first nationwide lockdown, it’s clear that shoppers’ habits have changed dramatically, with people favoring outdoor areas and more space overall, which could be a driving force for that properties in the north of England are rising in value so quickly.
In the South West, the average property value rose 8.6% to £ 266,182.
Sean Gibson, residential sales manager at Savills in Canford Cliffs, said: “In many cases the third nationwide foreclosure made people more aware of what they were missing and many buyers are now looking for a place that is a little more vibrant. with a lot to offer once social distancing measures are relaxed further.
Sean Gibson, Residential Sales Manager at Savills in Canford Cliffs (Savills)
“Strong demand from lifestyle movers, second home buyers and local movers has seen price increases continue in coastal areas, with a desire to relocate also sparked by a year away from relatives.
“Looking ahead, and noting that demand significantly outstrips supply in the housing market today, lifestyle drivers and the search for more space are expected to continue for much of 2021 – especially more than the prolonged experience of foreclosure will cause more people to expand and, in some cases, relocate to be closer to family.
The real estate market is experiencing an almighty boom with sales made at record rates due to government policies such as stamp duty exemption.
This is particularly relevant in Dorset, where lifestyle drivers and government housing programs lead to a more saturated market as people from outside the county move down.
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Tom Parker, consumer spokesperson at Zoopla said: “The search for space, combined with a shortage of supply, continues to impact housing prices in the south.
“Three- and four-bedroom homes are the most demanded property type, but listings for four-bedroom homes for sale are down 44% year-on-year in the Southwest and 40% in the Southeast .
“This disparity is good news for sellers, although for buyers it means there will be more competition.”
Here are the average home prices followed by the annual increase in May, according to Halifax:
– East Midlands, £ 213,481, 9.2 percent
– East England, £ 302,158, 6.5 percent
– London, £ 509,621, 3.1%
– North East, £ 150,401, 6.9 percent
– North West, £ 199,441, 10.6%
– Northern Ireland, £ 160,641, 9.1%
– Scotland, £ 183,351, 7.4 percent
– South East, £ 351,437, 6.1%
– South West, £ 266,182, 8.6%
– Wales, £ 190,345, 11.9%
– West Midlands, £ 220,998, 9.0 percent
– Yorkshire and the Humber, £ 183,404, 10.2 percent