New data has revealed house prices in the UK hit a record high, despite political uncertainty from Brexit and the snap General Election
Good news for housebuilders and the construction sector. New figures have revealed house prices hit a record high of £317,000. The data from property website Rightmove showed in the four weeks to 13 May prices sought by sellers rose 1.2 per cent, pushing the average asking price up.
Rightmove said despite political uncertainty caused by Brexit and the upcoming General Election, the market is moving. In fact, over the past month there has been a surge of families searching for larger properties.
The data revealed families with children under the age of 11 were twice as likely as the average person to be moving. Many of these families were seeking larger properties in school catchment areas. Three- and four-bedroom properties—excluding detached properties—saw asking prices rise by 5.4 per cent year-on-year in the past month, hitting £270,953.
Miles Shipside, a Rightmove director and housing market analyst, said: “As well as that shrinking house feeling, parents with young children also have the pressures of travelling times to amenities as well as the weekday school commute.
“These have to be balanced against under-pressure finances, even more so when the sector with the property type that suits them best is seeing the biggest price jump.
“What seems to be happening is that moving pressures are understandably taking priority over electioneering and Brexit worries. For many in this group, it seems that moving is definitely on their manifesto.”
Fifth consecutive month of growth
House prices have been increasing for the past five months, with overall asking prices hitting 1.2 per cent. This was an increase on the 1.1 per cent seen a month prior.
Brian Murphy, head of lending for Mortgage Advice Bureau said the political situation in the UK was having very little impact on moving.
“It would seem that this month’s report points to the majority of movers being nonplussed about the election, with their moving plans being driven by circumstantial factors that can’t wait, eg a growing family,” he said.
“The data from Rightmove does tally with Mortgage Advice Bureau’s observations of the market in April with regards written business, which saw one of the busiest weeks on record at the latter end of the month, underpinning consumer confidence and that, despite the current economic and political climate, for many it’s a case of keeping calm and carrying on.”
Uncertainty ahead
However, while the news is currently good for the housing market, it is expected the second half of the year could prove more uncertain. Economists suggest prices may be unsettled as households become increasingly reluctant to move due to rising inflation and weak wage growth.
“It remains to be seen how much momentum may drop away in the second half of the year with stretched affordability a problem for potential buyers, though competition among lenders who are keen to lend will help some to push their budgets higher,” Shipside said.
