House Prices: Is it going up or down this year in 2018?
As a result of global uncertainty by Brexit vote and the election of Donald Trump prediction of real estate market has become more and more difficult around the world in general and in the UK in particular.
UK housing prices enjoyed strong growth in the past few years and now some believe that time for growth is over and housing price might stagnate or even experience a correction. However, there are others who are of the opinion that given the low interest rate and short supply, the housing price might even go up. Only time can tell…
According to the government’s Office of Budgetary Responsibility (OBR) house prices rose 7.6 per cent in 2016. In the first quarter of 2014, house prices were growing at over eight per cent, and there hasn’t been a quarter when they have decreased in value since 2012.
Now let us look at the facts during the past five years. Five years ago the average property price for the UK was £116,000 according to Land Registry figures. Now it is £218,000, which represents eight times the average annual salary. This sharp increase in price has pushed first time home buyer out of the market or, at least, made it very difficult for starters to own their own home.