UK house prices increase at fastest rate in 18 years

January 22, 2020

Couple looking at house prices in window of shop

UK house prices increase at fastest rate in 18 years

UK house prices are rising at their fastest rate on record for January. According to Rightmove, the outcome of December´s general election has improved sellers´ confidence in the outlook of the housing market, resulting in increased asking prices.

Following the Conservative Party´s landslide win, the number of sales agreed between 13 December and 15 January increased by 7.5 per cent when compared to the same period a year earlier.

The average price of properties being introduced to the market has grown by 2.3 per cent, the biggest price increase for this time of year since the Rightmove house survey began in 2002. Currently, the average asking price for properties in the UK is at £306,810.

Miles Shipside, a director at Rightmove, said that the election result created a “window of stability” for those involved in the housing market after a period of prolonged uncertainty since the Brexit referendum.

He said: “The housing market dislikes uncertainty, and the unsettled political outlook over the last three and a half years since the EU referendum caused some potential home movers to hesitate. There now seems to be a release of this pent-up demand, which suggests we are in store for an active spring market.”

The average property with two bedrooms or less now has a national asking price of £193,103, according to the property website, meaning first-time buyers are facing record-high prices to get a foot on the property ladder.

Regarding first-time buyers, Shipside said: “First-time-buyer activity has remained strong, buoyed by cheap interest rates and the high costs of renting,”

“The annual rate of increase remains fairly modest at 1.6%, less than the rate of growth in average earnings, so affordability has actually improved a little for first-time buyers.”

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