Fri, 12 Feb 16
Property values in England and Wales jumped £700 in January, as price growth continues to pick up pace.
Prices rose 0.2 per cent month-on-month, a small increase, but enough to take the average value over the £290,000 barrier. Indeed, property values have risen 5.5 per cent over the last 12 months, reaching an average of £290,642.
Last June, average prices crossed the £280,000 marker, but it was way back in August 2014 that the £270,000 threshold was crossed.
"We’re passing these milestones in quicker and quicker succession," says Adrian Gill, director of Reeds Rains and Your Move estate agents.
"This hastening is good news for home-owners, but means it’s getting harder for those still hoping for home-ownership. In the last 12 months there’s been a 5.5 per cent upswing in average property prices compared to just a 2.1 per cent rise in average earnings."
Bournemouth posted the biggest increase month-on-month, with prices rising 2.9 per cent (£7,000) – the equivalent of £226 each day.
Gills attributes this upswing to the expanding technology sector in the city.
"Last year Bournemouth was named the fastest-growing digital economy in the UK. This ‘silicon beach’ surge has created more well paid technology jobs in the area – spurring the recent rise in home values, as more people look to move into the neighbourhood," he comments.
While the South East remains the region with the fastest year-on-year price rise at 7.7 per cent, London has now swept to second place. The typical property in London has increased in value by £34,485 in the last year – almost equal to the £35,333 median gross annual earnings in the capital. This 6.2 per cent hike in the capital’s home values has been driven by activity in the more affordable outer boroughs.
Regionally, though, there has been a significant increase in sales in the North West, rising 8.8 per cent in the last quarter of 2015, compared to the same period in 2014, as buyers seek more property for their money.
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