Increasing average house prices spell trouble for less desirable areas
As younger generations urge the government to find a way to lower house prices, research by the online estate agent eMoov has shown that the affordability gap between wages and property is continuing to widen.
The postcode lottery that is the property market has maintained its grip on whether or not potential buyers can afford to splash out on a new home according to the new data.
The online giant has postulated that the average UK home will increase in value by 56% over the next decade – with certain areas such as Oxford expected to see a rise of over 115%.
While the news is not as severe for more northern cities such as Newcastle – where an increase of just 9% is expected – the figures are certainly painting a morbid picture for the future of home ownership across the country.
Those who already own are, as a result, considered to be in a much stronger position with regard to asset wealth than those who are still saving in the hope that they can secure a mortgage before property prices become unreachable – even if they are unsure how much their house is worth in the present.
“With latest industry figures indicating an end to the post-Brexit market slowdown that has seemingly plagued the market over the last 18 months, many UK homeowners will be breathing a sigh of relief, despite having still enjoyed a notable annual increase in their property’s value,” said Russell Quirk, eMoov’s chief executive.
Location, location, location
The greatest danger for the UK itself is the possibility of certain regions becoming out of reach for those who are struggling financially, severely limiting the chances of young talent settling in the areas where they are needed, while other areas could find themselves starved of funding for the necessary upkeep of roads, education and other essential public services.
While house price increases have slowed in the last 12 months as a result of the Brexit referendum, prices are still rising at the rate of 0.37% a month on average.
For those looking to sell, the postcode lottery is also becoming a factor. In many northern areas, many homeowners are finding themselves struggling to make a profit on their properties – leading to longer stays on the market as they hope for a better offer, while those in more lucrative regions are finding it harder to find buyers who can afford the homes in question in the first place.
Sadly, many areas that are considered less desirable are likely to suffer from greater levels of crime, as well as becoming viewed more widely as ‘run-down’ – heavily deterring future investment from finance-savvy buyers.
Of course, housing-buying companies such as National Homebuyers will always be willing to make competitive offers on your property as we guarantee to buy any home – even in less desirable areas.
Worried that you won’t find a buyer? Why not ask National Homebuyers for advice, as we buy any house. Call 08000 443 911 or request a call back to find out how much you could get for your property.