UK Properties for The First Time Buyers Grew 21 Per Cent

Properties in the UK

The UK house prices rose marginally by 0.1 per cent (month-on-month as per Lloyds bank – Halifax subsidiary and IHS Markit). It is slower compared to July's 1.2 per cent growth. However, the analysts at UBS claim that overall the macroeconomic situations are favourable for the UK and Europe, and the average house price grew by 3 per cent in 2018 June.

It was slow compared to May 3.5 per cent (as per ONS stats). However, the average cost of homes grew by £6000 from June 2017 to £228,000 and was £1000 more compared to May.

The highest slowdown was reported in the South and the East, whereas the highest growth in prices was reported in the West Midlands by 5.8 per cent and East Midlands' price grew by 4.1 per cent per annum.

The price of semi-detached homes increased 4.4 per cent, and rates of flats increased by 0.5 per cent – which has been a slow growth compared to previous years. Rents grew 0.9 per cent a year in Britain to July, rents in Wales grew 1 per cent, and private rents increased 0.9 per cent.

In London, the price growth was higher than the previously estimated rate, as the results were positive in February and April.

In London, PwC forecasted a drop in cost in 2019, and its report UK Economic Outlook suggested that the rate will increase after falling by 0.2 per cent.

London House Rates and First-Time Buyers

Inflation increased in the UK by 0.1 per cent to reach 2.5 per cent in July, restricting wage growth and consumer spending. However, the Bank of England finds that the fixed rates will grow by two or more than 2 per cent till 2020, and the rates will grow slowly after that. In the latest developments, banks voted to raise interest rates to one of the highest in a decade.

The UK government introduced schemes such as Help-to-Buy that provided people with an opportunity to finance affordable homes, but the price growth continues. Once the scheme ends, it will become difficult for first-time buyers to invest.

Properties targeting first-time buyers rose by 21 per cent in the last decade as per Halifax reports, and the national average now stands at £208,741 (£172,659 in 2008), while growth in London homes has been over 48 per cent in the same time. The best performing borough of London is Havering, whose growth rate was 6.1 per cent, reaching £376,396, whereas Islington grew at 5.9 per cent.

One of the cheapest regions in London is Barking and Dagenham, where regeneration projects in the under paths and the master plan involved the construction of new homes where the riverside shops and offices are expected to lead. The price in the region is approximately £300,000.

The International Monetary Fund stated that the issue of housing deficit could not be resolved by rent control as the step to rent control may cause a further rise in home prices where the renters will try to stay back in dwellings that exceed their requirements. 

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