Planning to buy a house? You’d better save, as the average cost of a house in the UK has hit an all-time high of £ 338,447.
The North East of England remains the cheapest place to buy a home, with average prices of £ 166,723. London is, again, the most expensive, with average house prices reaching £ 645,268.
The figures, released by Rightmove, are the result of a “glaring imbalance between supply and demand,” the residential real estate site said. His analysis identified a shortage of 225,000 homes for sale which, if available, would have helped keep prices low.
The stamp duty holiday was partly responsible for an increase in demand, leading to the busiest first semester on record by Rightmove. In 2021, the average house price rose by £ 21,389 (+ 6.7%) in just six months. But activists say the lack of affordable housing was already a problem, long before Rishi Sunak’s plan to move the market.
Commenting on the latest figures, Anya Martin, director of the housing campaign group Fixed price, says that the situation is going from “bad to worse” for tenants and potential first-time buyers.
“Our decades-long failure to build enough new homes means that prices have continued to rise steadily. And the absence of a stable and reliable production of new housing also means that house prices are very vulnerable to savage spikes and crashes, depending on credit and tax conditions, ”she told HuffPost UK.
“The government needs to remove barriers to building new homes and stop tinkering around with policies like home buying assistance that do nothing to make housing cheaper. Otherwise, we’re going to see more young people being permanently excluded from the homes they want and need. “
Here is the full breakdown by region.
Average price of a house in the UK: £ 338,447
Scotland: £ 171,902
Wales: £ 230,759
North East England: £ 166,723
Yorks and Humber: £ 217,344
East Midlands: £ 258,697
North West: £ 255,261
West Midlands: £ 259,337
East of England: £ 392,889
London: £ 645, 268
South West: £ 349,089
South East: £ 450,644
With house prices so high it’s now cheaper to rent a property than buying a house, for the first time in over six years. But, let’s face it, the rent is still quite exorbitant, even if the pandemic has caused a (slight) drop in rental prices.
The stamp duty chaos surrounding buying a home may have proven its worth, but it’s not over either. Although there was no tax on the first £ 500,000 of properties until June 30, the stamp duty changes gradually and does not end overnight. From June 30, the threshold fell to £ 250,000 until September 30. Stamp duty thresholds will return to normal levels from October 1.
All of this means you might want to wait if you’re looking to relocate, says Jo Thornhill, mortgage expert at MoneySuperMarket.
“First of all, if you are actively looking, you are racing against time because the tax break ends in September,” she said. previously reported to HuffPost UK. “Another factor to take into account is that too high house prices could cause problems in the short term. This is because when the precipitation subsides, you may find that your property is worth less than what you originally paid for.
“With these points in mind, you may want to consider biding your time rather than rushing into shopping. But, if you choose to take the plunge, be sure to act on it. mind the financial situation as a whole. ”
This article originally appeared on The HuffPost UK and has been updated.