Average UK House Price Hits £284,000 in February
3 minute read
Fresh data from the Office for National Statistics (ONS) has revealed that the average house-buyer in February 2016 paid 8% more than those buying residential property in February 2015. The average cost of a home was £269,000 in February 2015, rising to £284,000 in the same month this year. That’s an increase of 7.6%. The sharp rise in house prices came largely from the East and South East of England. In the East, house prices reached an all-time peak of £318,000 average cost. In the South East the average home price also broke records, hitting £263,000. Elsewhere in the country and across the UK’s regional borders, far less dramatic increases were seen. In fact, in Scotland a 0.8% drop in prices was recorded. In Wales, prices rose by a gentler 2.8%, while in Northern Ireland houses cost 2.4% more. It is in England where the sky-rocketing rates were seen, with the total average increase hitting 8.2%.
Why the Rise?
The blame for the price hike has been placed at the door of a gulf between supply and demand for housing in England. Cheaper mortgage rates and decreasing unemployment during the period are prompting many people to want to buy property, yet the availability of the type of property they want (in the area they want) is limited while demand continues to grow, pushing up property prices and creating a “seller’s market”.
Is Buying a Home Unaffordable?
While mortgage rates remain historically low, buying property is still an affordable option for many. But as property prices rise and rise, more and more would-be buyers find themselves priced out of the market as stagnant real earnings growth fails to keep pace with house price rises. For those not yet on the housing ladder who struggle to access mortgages because of less-than-perfect credit ratings, the problem is compounded. But, with smart saving to establish a good deposit, and some careful “healing” of your credit rating to give access to more affordable borrowing rates, home ownership could still be possible.
How to Heal Your Credit Rating
Aspiring buyers in this position could benefit by taking the following steps to start repairing their bad credit: – Ensure you are on the Electoral Register – Immediately cease applying for credit until credit issues have been resolved – Cancel unused credit cards Are you planning to buy a property in the current costly climate? The Just Mortgage Brokers team can help you find a mortgage which suits your budget and your lifestyle, even with adverse credit. For specialist advice, contact our mortgage experts today on 0800 114 3575.