It’s official: the latest ONS and Land Registry figures have revealed that house prices are rising faster than they have for the last 17 years – with the North West leading the way. The region showed the highest annual price growth in the UK, with average prices increasing by 18.6% in the year to June 2021.
Across the UK, average house prices increased by 13.2% to £266,000, with London seeing the slowest price rise, recording growth of 6.3% compared to a year earlier.
Whilst the stamp duty holiday at the end of June played a part in the historic rises, demand continues to be extremely high even as the tax relief is tapered off. The impact of the coronavirus (COVID-19) pandemic on both the number and supply of housing transactions is likely to continue to push prices higher in the future.
A recent poll of housing analysts by Reuters suggests that British house prices will continue to see further substantial gains in the future. These rises will be bolstered by lower borrowing costs, shortages of supply and a general demand for greater living space.
After the Bank of England slashed interest rates to a record low of 0.1% during the pandemic, as well as restarting its bond buying programme, borrowing is now far cheaper for those that can afford a mortgage on a home.
Consequently, demand for property in the UK is now greater than it has been for many years. New data from HMRC shows that 213,120 sales were registered in June 2021 alone, making It the busiest month since the figure was first recorded in 2005.
These figures demonstrate the strength and resilience of the market, and this is particularly the case in the city centre luxury markets where apartments simply cannot be built fast enough.
Investment in the Manchester property market and the North West region continues to be a fantastic option for any portfolio. To find out more about why you should be investing in property in the North West, contact our team today.
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