Online property service Rightmove reported that as of this September, house prices in the UK have gone up to reach record highs. The average house price is now at £294,834 after an average increase of £2,550 across the nation making prices now more than 6% higher than they were a year ago.
This marked an average increase of 0.9% over the last month for the whole country, with West Sussex, Essex and Cambridgeshire reporting monthly increases of more than 3% each. This compares to the 2.2% increase seen in greater London, where the average home now costs just over £620,000.
Rightmove are pointing towards dwindling supplies of homes as the big root cause behind the record high prices weíre now seeing. Indeed the number of people actually selling went down by 4.9% in the north of the country, and by a staggering 7.1% in the south. This echoes the findings reported by the Royal Institute of Chartered Surveyors, who found that steadily reducing supplies mixed with increasing demand and new mortgage deals all combined somewhat toxically, driving prices up ever higher.
Miles Shipside, director of Rightmove, said on the subject: ìHigh demand, lack of suitable supply and increasingly stretched affordability are leading to some extremes in market forces in different sectors and parts of the countryî
He added that; ìone of the effects is that those who own property that is in most deman, either by type or location, are seeing their values continue to rise. Their properties are rich in features and benefits that others want to buy, and as a consequence they are getting proportionately richer than either owners of less desirable homes or those who are not on the housing ladder at all.î
Hamptons International, a property firm, have also expressed similar sentiments to Rightmove and Rics, predicting an overall increase in house prices by 5% in England over the course of 2015. Indeed thanks to recent figures reporting shortening supplies, they have revised their growth estimate for greater London from 1.5% all the way up to 6%.
Save money on your mortgage by comparing interest rates with MoneyExpert.