– 03 Jan 2020 –
A new decade has begun, an ideal time to look back at the housing market over the past 10 years.
- In England and Wales, the average price of a property has risen by £72,000 over the past decade. Across the South East, South West and London, average property prices have increased by over £100,000. All but one region have seen double digit house price growth.
- Official figures indicate 30% of dwellings are now rented privately from registered providers or with a job or business. This equates to an extra 1.3 million dwellings compared to a decade ago.
- Changing demographics and family structures have seen the number of households rise at a higher rate than the population since 2010, a trend that looks set to continue. What will the next decade hold? Only time will tell.
Regional property price growth forecasts
- An average of independent forecasts predicts the average price of a property will rise by 1.8% over 2020 and 15.9%, cumulatively, over the next five years, an increase in purchase price of just over £37,000.
- With predicted growth of 2%, Scotland and the North West are anticipated to experience the fastest rate of price growth over 2020.
- Over the next five years all regions of the UK are anticipated to witness double digit price growth, the North West and Yorkshire and the Humber leading the pack.
- Despite predictions that cumulative growth across the capital will be below that of other regions, the average price of a property across London looks set to rise by over £50,000 over the next four years.
Prime North West London Lettings Overview
The rate of annual rental growth across the UK remained unchanged in December at 1.4% (ONS). A shortage of supply and continued demand continues to underpin prices. Hometrack report a 4% reduction in rental supply across the UK since 2017, while demand has increased 8% over 2019.
York, Bristol, Nottingham are the current top three cities for rental growth according to the latest rental index produced by Hometrack. Rental values have increased by over 5% year-on-year. Leeds and Preston complete the top 5. At 2.8% rents are rising at their highest level for almost four years across the capital, which has seen a 19% reduction in available supply over the past two years.
At 76.3% the UK employment rate was at a record high in the three months to November, while wage growth continues to outpace rises in the cost of living. Adjusting for inflation, wages were 1.6% higher than a year ago (including bonuses) and 1.8% higher (excluding bonuses).
UK inflation unexpectedly fell to its lowest level in over 3 years in December. According to the ONS consumer prices rose just 1.3% in December, the smallest increase since November 2016. The fall is likely to fuel expectations that the Bank of England will cut interest rates which were held at 0.75% in November.