How Fast Are UK House Prices Rising?
House price growth in the UK slowed in September, but according to one forecast, the cost of housing will continue to increase over the next few years.
The Guardian reports that according to Nationwide’s latest estimates, house price growth across the UK dropped sharply in September, compared to August. Nationwide’s House Price Index found that UK house prices rose by 0.1 per cent month-on-month in September 2021, down from 2 per cent in August.
However, estate agent Hamptons has forecasted that homeowners in the UK can expect to benefit from further house price growth from 2022 to 2024, which also means further frustration for would-be first-time buyers.
The annual rate of house price growth was steady at 10 per cent, but slightly down from 11 per cent in August, and down from 13 per cent in June. According to Nationwide, the average UK house price now stands at £248,742.
The stamp duty holiday, which has now ended, provided a much-needed boost to the housing market, while the furlough scheme boosted savings, and the lockdown measures led families to want larger homes, all of which led to the conditions that inflated prices.
It has also been a good time for buy-to-let landlords, who were also able to take advantage of the property tax holiday, with many buying properties in pursuit of high rental yields.
Similarly, major financial institutions have stepped up their involvement in buy-to-let. Lloyds Bank, for example, intends to buy 50,000 homes to rent out over the next decade.
Hamptons predicts that UK house prices will rise by as much as 3.5 per cent per year between 2022 and 2024.
This would be down from the 4.5 per cent year-on-year growth rate that’s expected in 2021, but still a robust rate of growth.
While this is good news for those who already own houses, it’s not welcome news for the millions struggling to get on the property ladder for the first time.
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