[Economy] North West England leads housing boom with prices up 15%

[Mr.Talha]

https://www.bbc.com/news/business-57834048

 

 

House prices have risen sharply across the UK, driven by an increase of more than 15% in the year to May in the North West of England.

Official figures show property prices also rose at a rapid rate in Scotland, Wales and the North East of England.

The Office for National Statistics (ONS) said the average UK home cost £255,000 in May.

That was £23,000 more than the typical value a year earlier. The 10% rise was the fastest rate for 14 years.

Detached and terraced homes recorded the biggest price increases, data from the Land Registry in England and Wales show.
Estate agents have reported huge demand from property buyers during the year so far.

This picked up when many buyers wanted to complete their purchases before stamp duty holidays were wound down. In May, the tax breaks were still in place for England, Northern Ireland and Wales.

 

 

However, that it not the only explanation for rising prices. Scotland's property tax break was withdrawn at the end of March.

People's changing priorities as a result of the pandemic mean they are looking for bigger homes in which to live and work.

A lack of homes being put on the market to match demand has also led to rising prices. A majority of Royal Institution of Chartered Surveyors (RICS) members think prices will continue to rise over the next year for that reason.

"The market was being powered by ultra-low mortgage rates, valuable stamp duty savings and people rethinking what they want from their homes due to the pandemic," said Katie Cave, director at mortgage broker Clearpoint Finance.

 

 

The ONS said that house prices in the UK rose by 10% in the year to May.

The North West was the region with the highest annual house price growth, with average prices increasing by 15.2%.

There were also big rises in Wales (up 13.3%), Scotland (up 12.1%) and the North East of England (up 11.8%).

At the other end of the scale, London recorded the slowest property price rise over the year, of 5.2%.