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Why Do Uk House Prices Continue To Rise Higher Than In Europe?

August 15th 2014
By: Melanie
Why Do Uk House Prices Continue To Rise Higher Than In Europe?

Since 1973 house prices in the UK have continued to rise steadily, making it harder and harder for first time buyers to purchase a property. UK properties are indeed some of the most expensive properties in the whole of Europe, not only in London but also in the South East.

Strict building regulations in the South have resulted in fewer properties being built, and demand continues to outstrip supply across most of the South of England. Space is tight in the UK, if you plan on building your own house in the UK it is now virtually impossible to find a piece of land.

The Telegraph this week published a synopsis from Christian A. L. Hilber of the London School of Economics and Wouter Vermeulen of the CPB Netherlands Bureau for Economic Policy analysis stating that house prices in the UK would have been 35% cheaper if there had been an absence of building constraints across the UK. Which would have resulted in prices rising from £79,000 to £147,000 instead of the current £226.00

The Telegraph stated that if we had eased planning permission as much in the South East as we had done in the North East over the past 40 years, then house prices would have been 25% lower.

It seems that house prices will continue to grow in the foreseeable future in commuter belts and in London, as people need to be where they can find work. The coalition have started to address the problems of lack of housing, but with forever rising demand, partly due to foreign investment in London, it looks as though house prices will continue to grow at above inflation rates.

Although house prices have continued to grow across Essex and Herts, they still remain much cheaper than in Central London, and commuters, even with their train fare are finding they can buy much bigger properties within an easy commute to the capital.

If you are thinking of moving out of Central London then why not pop into your local branch of Intercounty for a coffee and a chat or give our team a call on: 0844 8111090