The average price of a house in the UK rose by £2,550 to £294,834 - if this growth continues it’s expected that it will reach £300,00 plus by the end of 2015 according to Rightmove’s House Price Index.
It’s the biggest rise in 13 years, and if it continues at this pace then the average property price could hit £302,484 by December, as demand outstrips supply.
The five most expensive counties to buy a house in the UK are; Surrey, where the average house price is £545,270, Hertfordshire £460,956, Oxfordshire £437,042, Buckinghamshire £426,163 and Berkshire the average house price reached £422,546.
Rightmove has stated that if house prices continue to increase at the current rate, then the average house price in London could reach 1 million by the end of 2020.
Mr Shipside added: “While we are not suggesting that this level of growth can or will be maintained, this extrapolation illustrates the desperate need for building and more affordable housing in and around the capital.”
Lack of new houses in UK remains a huge problem for people looking to get on the property ladder. New houses are being built at the lowest rate since World War 2, despite the introduction of new building schemes by the government. This shortage according to Lloyds Bank is because of lack of suitable candidates in the building sector such as electricians, site managers and so fourth and long delays in planning applications.
It seems as though until this problem is addressed house prices will continue to grow exponentially and the property market will remain sluggish.
Source: Daily Telegraph