Are UK house prices about to surge again?
This year, UK house prices have experienced many revivals that have transformed the market. The first few months of 2020 alone have already replaced 2019´s stagnant growth with a thriving and prosperous rebound.
The latest research has found that house prices across English cities have increased above the pre-financial crisis peaks for the first time since 2007.
Central London properties recovered to pre-crisis levels after just over two years: the fastest of all UK cities. Newcastle was the last city to exceed pre-crisis levels, only achieving recovery in late December last year: 12 years after the period of economic decline.
UK city HPI (house price index) is currently sitting at +3.9 per cent as prices approach a 3-year high.
According to Zoopla UK Cities House Price Index, January´s UK city house price inflation stood at 3.9 per cent year-on-year. The average price reached £258,100, having continued its rise since August.
Richard Donnell, director of research and insight at Zoopla, said: “While it took 12 years for all English cities to return to pre-Global Financial Crisis levels, the central London market returned to this level in just 2.3 years.
“The subsequent decrease in the value of sterling created a window of opportunity for overseas buyers to secure competitive value in high-value markets and, since then, house prices in London have rebounded by almost 60 per cent, outstripping all other UK cities.”