Average UK property passes £200K mark

Average UK property passes £200K mark

Capital growth from UK real estate continues, with tight supply and global appeal pushing prices higher in June.

Summary:

  • The average property price in the UK has increased to £200,280
  • A long-term, proven record of high capital growth makes UK property attractive to a wide range of global investors
  • The uncertainty surrounding the eurozone may see some investment portfolios embrace more real estate as equities remain volatile

The average UK property is now worth over £200,000.

Figures from Halifax show a quarterly rise of 3.3% and an annual 9.6% increase in house prices.

It means that the annual rate of capital growth has increased from May’s figure of 8.6% and it is currently at its highest level rise since September 2014.

A monthly breakdown reveals a rise of 1.7% between May and June, which is the fourth consecutive monthly rise.

Martin Ellis, Halifax’s Housing Economist, pointed to the constrained supply of housing stock in the UK, with the number of new homes for sale currently at record low levels.

He said: “This shortage has been a key factor maintaining house price growth at a robust pace so far in 2015. Economic growth, higher employment, increasing real earnings growth and very low mortgage rates are all supporting housing demand with signs of a recent modest pick-up in demand.”

Prices are set for further growth as investors from both the UK and aboard look to the sustained growth of the UK real estate market amid much global uncertainty.

Analysts are waiting to see how the potential effect from the current Euro crisis and what happens if Greece does default and leave the single currency.

It is expected there could be a move away from equities into bricks and mortar, especially if the UK remains outside the political and economic contagion that will cover much of the Eurozone.

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