Average UK house price to hit £300,000 in the next three months

The average price that homeowners in Britain are hoping to flog their houses for is set to reach a staggering £300,000 by the end of the year, if price growth in the property market continues at its current pace, new research has revealed.

MONEY House 1Rightmove’s House Price Index showed the average asking price for a house hit a new national high this month amid a supply shortage. The increase of £2,550 to £294,834 is the biggest September rise in 13 years, and if property prices continue to rise at this astounding rate, property coming to the market will have a price tag of £302,484 by December.

While the family-home market soared by about 1.2pc this month, prices in the first-time-buyer sector stalled, as home buyers struggled to afford prices which have already risen by around £10,000 in the last year.

Miles Shipside, of Rightmove, said: “High demand, lack of suitable supply, and increasingly stretched affordability are leading to some extremes in market forces in different sectors and parts of the country.”

Although the report suggests there should still be a “holiday-season-pause” in the property market, in London, prices leapt by 2.2pc. The average asking price of newly-marketed homes in the capital also reached an all-time high of £620,003.

average Sep house prices - png chartRightmove warned if the acceleration in price growth continues, spurred by a long-term supply-demand imbalance and international allure, the average listing price of a house in London could easily hit £1m by the end of 2020.

Mr Shipside added: “While we are not suggesting that this level of growth can or will be maintained, this extrapolation illustrates the desperate need for building and more affordable housing in and around the capital.”

The study comes as a separate report urged the government to address the UK’s housing crisis. In the year to June, 131,000 homes were completed, a 15pc rise on the year before. However, this is almost half the 250,000 homes needed to be built every year to rein in sharply-rising house prices.

In the last six years, house building hit its lowest level since World War II and early indications already suggest next year’s housing completions are also likely to be slower, as the number of housing starts slid 14pc in the second quarter of the year to 33,280.

The report, commissioned by law firm Bond Dickinson and planning consultants Quod, called on government intervention to tackle the supply shortage.

“There is a clear imperative for central government to show strong political leadership in driving large-scale housing development in the national public interest,” it said.

By bringing housing within the National Significant Infrastructure Projects regime, it could harness the power of the private sector and “relieve hard-pressed local authority budgets”, to deliver the required uplift in housing supply.

Meanwhile, efforts to improve the housing shortage are being hindered by a dearth of skilled industry workers and the current bureaucratic planning system, a survey by Lloyds Bank indicated.

More than a third of developers believe there is a lack of suitable candidates to fill existing and new construction jobs, including electricians, site managers, project managers, quantity surveyors and architects.

 

Source: The Telegraph

http://www.telegraph.co.uk/finance/property/11878380/Average-house-price-could-hit-300000-in-three-months.html

 

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