Property Prices, they just seem to keep on going up and up. Many people are now asking when and where will it stop? Is this growth sustainable?
Last year property prices increased across the UK by an average of 10.8%. In the North West, it averaged at 10.2%. Closer to home in Lancaster it was 11.2% and in Morecambe, it was slightly higher at 11.4%. This is the strongest annual growth in property prices since 2002.
The average price of a UK home now stands at £274,712, marking another record high. Across the UK house prices increased by nearly £27,000 over the course of 2021. When you compare, properties in Lancaster and Morecambe are still relatively affordable. In Lancaster, the average house price is now £169,399. In Morecambe, it is £156,221. We still have a long way to go to catch up!
Prices rose in all areas of the UK. The South West saw the largest increase, followed closely by Wales.
The property market has been driven by many different factors which were initially brought on by the pandemic. Initially, it was the desire for more space and many people left the bigger cities searching for more open space. This was then fuelled by the stamp duty holiday. Today it is a lack of supply and a very demand.
Moving forward it is the supply and demand levels that will dictate house price growth. Valuation requests in January were 27% across the UK. Locally in Lancaster, this equated to 20% more people listing to sell in January. February is looking similar. I do feel though it will be a while before it feels like there is a choice for buyers out there!
My name is Michelle Gallagher. If you are thinking of moving and want to know what your home is really worth in today’s market please ask me, I am here to help!
Thanks for reading
Michelle x