House Prices Surprise Experts with Continued Increases Despite Political Environment

House Prices Surprise Experts with Continued Increases Despite Political Environment

Consumers are still showing up for the housing market despite what experts are forecasting. The gloom and doom over the current political environment keeps being shouted from the mouths of some, but consumers are showing their resolve and are treating the situation like business as usual. With low interest rates and lenders still in a competitive mode, there isn’t much going to push back the hopes of those looking to be homeowners or those fixated on the savings available with historically low interest rates.

The latest data released by the Office for National Statistics (ONS) which is for the month of May, revealed that the average house price in the UK rose 4.7% in the year to May. This put the average house price at £220,713. The month to month from April to May increased by 0.5%.

Across all regions the average house price increased with the area east of England showing the highest increase at 7.5%. The slowest annual growth was in the north-east at 1.6% and London showed an increase of 3%.

London house prices were more than twice that of the UK average at £481,345 showing demand is still high for property in the capital. The most costly area was Kensington and Chelsea in west London with an average house price of £1.5 million.

The ONS data comes from the UK Land Registry.

There is still an expected slowdown in the housing market for the last half of the year, but summer usually is a popular time of year for house shopping. Good weather has people out and about and planning for the coming close of the year which for many includes a new home in which to celebrate the holidays and endure the winter months.

While the housing market and mortgage lending may eventually slow down to the end of the year, homeowners are expected to pick up the slack in mortgage lending with remortgages. As interest rates remain low and savings are a possibility, homeowners, too, want to be a part of the savings that are available.

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