House prices in the UK are at the lowest level of the previous four years, but there is no upward movement in the sales of houses due to the inflation. The average house price in the UK is approximately £200.000. House price growth in Britain has been in its lowest level since 2013. Property values jumped by just 3.8% in March 2017 which had showed a 10% increase on March 2016.
Last week financial lenders declared that house prices had a huge decrease in the first months of 2017. However according to the Halifax index house prices have been flat since February 2017. On the other hand, despite the low prices, total sales in February were 1% lower than in January. In fact, sales were 6% higher than the previous quarter, the Christmas period.
It is explained that average house prices have increased by more than earnings in a third (31%) of local authority districts across the UK in the past two years.
It is reported that the biggest gap between rising property values and earnings was in Haringey in London. House prices in the borough have risen by an average of £139,803 over the last two years. It is stated by the Halifax experts that the annual rate of house price growth has more than halved over the past 12 months.
According to Pantheon Macroeconomics house prices were increasingly limited by households’ incomes, and mortgage rates had hit a floor and regulations had prevented a further upward shift in average loan-to-income ratios. They estimate a 2% increase of house prices in 2017.
The Royal Institution of Chartered Surveyors (Rics) it is obvious that prices are flattening and if you want to earn, then Easter is the time to get on with it and be more realistic about making and accepting offers.
Despite the slowdown of house prices it is not enough to help young people buy their first house. This law price level is still not enough to exceed the 18-34 year-olds believe of young British about they have no chance to own a home.