House price growth in UK was 4.7% in May

ldnAnnual house price growth in UK is 4.7% at the end of May 2017. Prices in England increased by 5% year on year and by 0.5% month on month to an average of £237,662, in Wales they increased by 3.8% year on year to £150,000, in Scotland by 3.5% to £143,000 and in Northern Ireland they were up 4.3% in the year to the end of March to £124,000. In London, an annual price increase of 3% was recorded, taking the average property value to £481,345 but month on month prices fell by 0.3%. In May 2017, the most expensive borough to live in was Kensington and Chelsea, where the cost of an average house was £1.5 million. In contrast, the cheapest area to purchase a property was Burnley, where an average house cost £78,000.

John Goodall, chief executive officer of buy to let specialist lender Landbay: “Buyers started feeling the pressure of falling real wages and entering the market in fewer numbers. But demand is only half of the story, insufficient house building continues to restrict the number of available homes for sale, which may not be creating house price pressure at the moment, but will when demand begins to pick up again. While the pace of house price growth may have slowed, house prices still continue to rise, ultimately meaning that fewer people can afford to buy, which can only place greater pressure on the UK’s rental sector. For that reason it’s essential that new construction is planned across all tenures, so that rents don’t escalate to the point where they’re inhibiting aspiring home owners ability to save for a deposit. Quite simply, we need to build more purpose built rental homes to support those hoping to take their first steps onto the property ladder.”

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