Housing costs pricing first-time buyers out of the market
Wed 30 Apr 2014
House buying is becoming increasingly more expensive for many Brits, new research has shown.
Figures published by the Land Registry revealed that property prices rose at an annual rate of 5.6 per cent in March, the fastest rate in nearly four years.
Its findings showed that prices in London are particularly high. Housing costs in the sector rose by 12.4 per cent over the last year. On average, a person can expect to pay up to 414,490 to live in the capital. Land Registry figures now show that across the country, property values now stand at 169,124.
But house price growth has not just been seen across London. All regions across England have seen prices rise year-on-year, but in Wales they fell by 1.6 per cent annually to 113,275 on average. The greatest monthly rise was seen in both the east and north-east regions with rises of 1.1 per cent. But it is not just ordinary homes that have been subjected to these increases. Premium properties have also gone up in prices. There was a 61 per cent rise in homes over 1 million that were sold in January 2014, according to the report.
Commenting on the findings, a property economist at Capital Economics, said however, that although the Land Registry figures pointed to a slight recovery in the market, this is unlikely to translate into a "runaway boom" just yet.
He added: "That is not to say that the housing market is grinding to a halt. With the economy growing by a healthy 0.8 per cent in the first quarter, and earnings finally rising faster than prices, demand for housing is not set to collapse."
These figures have also been supported by findings from Estate Agents across the country who are reporting that a rising number of people are renting for longer, as purchasing a home is becoming increasingly unaffordable.
Estate Agent Marsh & Parsons for example revealed that the average price of a three-bedroom home in prime London has increased by 729 a day over the past year.
It said that property prices rose by 19 per cent since April 2013.