UK Housing Market Data Reflects Sensitivity over Time
According to recently released data, the UK housing market has displayed significant sensitivity to the economy through the years and especially the last few decades. Since 1980 the market has seen fluctuations in demand but fewer changes in the amount of supply which is leading up to a continuing problem of shortage. This problem is expected to remain an issue going forward as the government remains committed to finding solutions and find more balance.
The report from the Office of National Statistics also mentions how the average house price has been steadily climbing for years as the increase in wages has not matched the trend. Since 1980 the average house price has increased by an average of 7% per year. There have been few years with a decrease, but the biggest is the year 2009 with a fall of almost 8%. This was a result of the recession which affected not only the UK but the entire globe.
The number of first time buyers is steadily recovering, but high prices and large down payments make it especially challenging. Just after 1990, 67% of those in the 25 to 34 age bracket were house owners. In 2014 this number had fallen by almost half to 36%.
For many, the problem of shortage of supply remains the critical issue of our time. Construction of new homes for example totaled more than 250,000 in the year 1980. Compared to the year 2015 in which just more than 152,000 were built. Currently, construction of new homes has increased for three straight years.