According to the recent figures released by Zoopla, the value of British homes as gone up by an incredible 20% over the last five years.
The average home in the UK has risen by £49,257 since 2016 accounting for £1.6 trillion over five years, with the value of Britain’s homes now standing at a staggering £9.2tn – this is four times the UK’s GDP and four times the value of all the companies listed on the FTSE 100.
How has this happened? Since 2016, house price growth has been underpinned by record low mortgage rates.
What’s more, the lockdowns and restrictions resulting from the pandemic has led to people reassessing what they want and need from their homes. Buyer demand has been unprecedented over the last 18 months – as they seek homes with additional bedrooms to turn into a home office, more outside space and a rise in demand for more rural homes.
However, we have seen a shortage of available properties to satisfy demand, and this has pushed up prices further.
The sharp rise in house prices means your home could be worth more than you think so if you’re thinking of moving, you could have more money for your next house purchase. In addition, if you aren’t considering moving, you’ll have more equity in your home and could apply for a cheaper mortgage rate.
What’s next for house prices?
Going forward, it has been predicted by industry experts at Zoopla that house prices will slow to 3% next year and transactions will fall by 20%. The number of agreed sales for this year is predicted to hit 1.5m totalling £473bn (up from last year’s figure of £378bn) making it the strongest year since 2007.
The high living costs we are facing could impact the property market – with higher fuel costs, utilities bills on the rise, a cut in benefits and a rise in mortgage rates. At present house price growth stands at 6.6% so this will effectively halve next year.
Clyde Property is a leading independent, multiple award-winning estate and letting agent with more than 30 years’ experience in selling and letting property in Scotland. Just call your local Clyde Property branch today for friendly, impartial advice on finding your next dream home.
