Average house price tops £250k for the first time

The average house price in the UK has surpassed a quarter of a million pounds for the first time. That’s according to Nationwide’s latest House Price Index. The average house price in October 2021 reached £250,311. That figure demonstrates a 9.9% annual increase and a 0.7% month-on-month rise, according to Nationwide. That was slightly down on September’s annual growth rate of 10% but above the expectations for a rise of 9.2%.

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What has propelled the recent price growth?

Experts say the recent growth has been a result of the ability of households to save more cash, a lack of properties on the market and a rush for larger homes with outdoor space, with some people viewing the work from home opportunities as more longer term. Covid has had a positive impact on the property market and apart from the conveyancing process slowing down as a result of the earlier lockdown, the news was positive. The stamp duty holiday created a hive of activity too with people rushing to move before the end of the grace period.

Are people still on the move?

Stamp duty breaks and low-interest rates as well as work from home opportunities have resulted in a desire for people to move home. The market remains buoyant and home movers are eager to grasp opportunities when they come. For homeowners on the move seeking a home buyers survey Nottingham has a number of professionals who will be keen to assist with all paperwork related to relocating. As it can be a daunting process, a good professional will shoulder the burden and allow you to de-stress during the move and you can visit Sam Conveyancing for more information.

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Are interest rates set to rise?

There has been speculation that the Bank of England will increase its interest rates soon, with some investors predicting the rate to rise from its current record low of 0.1%. It could rise as much as 0.25% or 0.5% but it is more likely to be modest than sizeable. According to the Financial Times there is a possibility that house prices will fall as the interest rate rises.

Will the north-south price gap narrow?

The north-south gap in property prices will close over the next five years, according to experts. Some areas have seen rises of almost 20% and property firm Savills says it anticipates an increase in prices across Great Britain.

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