In a report conducted by Rightmove, it has been revealed that the average price for a home in the United Kingdom is just £30 short of the all-time record amount. Rightmove went on to forecast that the peak average price would be supplanted in the near future.
Figures pertaining to prices in the middle of March 2015 reveal that in England and Wales the average is £281,752 which is a 1% hike on the month before.
The record price was set in June 2014 and experts at Rightmove believe this figure is about to be ruptured as the shortage of choice for potential buyers further drives up prices. This trend is set to be further perpetuated by the upcoming alteration to pension schemes in April that will mean UK citizens over the age of 55 will have greater access to their pension pots.
Experts believe that the millions of people that will subsequently have access to all their pension money will lead to a number of those in retirement attempting to acquire buy-to-let households which will in turn drive up the average price.
The director at Rightmove, Miles Shipside, commented on the report: “Agents report a high level of interest from new landlords, or ‘granlords’, who are typically first time, retirement age, buy-to let investors. With the highest returns for the lowest investment being at the lower end of the market, the first-time buyer property sector will be the greatest recipient of any increase in demand from investors with substantial pension pots.”
He went on to note: “Unfortunately flats and terraced houses with two bedrooms or fewer are coming to market in smaller numbers than the middle and upper tier sectors, so are the least prepared for an upsurge in demand.”
Furthermore, Rightmove revealed that the average price for a first-time buyer had steeply risen by 7.6% in twelve months, with the figure reaching £169,414. The anticipated investment in to buy-to-let homes from retirees is set to enhance this trend.
There is much regional variation in house prices across England and Wales. The East of England was witness to the most intense increase in average price, with an 8.8% hike from the previous year with the average cost of a home reaching £297,863.
The second highest rate rise happened in the South East of England where the average price for a property reached £369,600, an 8.2% increase from the year before. In the London area, there was a 5.5% hike meaning a property buyer for the average household will have to now fork out £580,308.
The only region that saw a year-on-year reduction in average house price was the North East, which recorded a 1.1% fall leading the average price to reach £143,238. Furthermore, in Wales there was a slight 0.2% increase from the year before and the average asking price settled at £169,477.
This news comes a few days after the Royal Institution of Chartered Surveyors stated that house prices in the country’s capital could increase by as much as 30% across the next five years. Overall, this prediction illustrates the extent to which property is valued in Britain at present.