House Prices Dwindling
Reading has been named the UK's top property hotspot, with prices up 13 per cent in a year, as new figures showed house prices in the UK unexpectedly fell last month taking the annual rate of price increases to its lowest in two years.
Property values are continuing to rise across most of the UK, but the pace of increases has dwindled. A year ago, house prices across the UK were surging at an annual rate of 11.8 per cent. The average UK house price is now £195,055.
The easing in house price inflation has arrived despite record low mortgage rates. The effect of these cheap deals has been tempered by new tougher mortgage lending rules introduced in April 2014.
A current shortage of properties on the market is also likely to provide support to house prices.
The gradual downward trend has been in evidence since mid-2014. House price growth continues to outpace earnings, but the gap is closing, helped by a pickup in annual wage growth.
Regional figures show Reading at the top of the property pile, with house prices up 13 per cent over the past year, followed by Oxford with a 12 per cent rise and Coventry, Brighton and Bristol, which all have prices rising at 10 per cent annually.
The coldspots for the property market are Sunderland, Belfast and Nottingham, where prices are down 4 per cent, 3 per cent and 2 per cent, respectively.
“House prices need to level off to allow first time buyers onto the ladder” says Greengates Builders Merchants Accrington, Lancashire.