Adam Male, founder online estate agent Urban.co.uk comments on the newly released Nationwide House Price Index:
“The Nationwide Index has released figures this morning suggesting that property prices in the UK are up by 0.6% from September, with the average price of a property in the UK now at £196,807, up from £195,585 in September.
London continues to buck the national trend and create its own market, with figures from the Land Registry announcing that the average house price in the capital is now around £499,999 – over double the rest of the country. Based on the same data, further figures state that properties in London are rising at an average rate of £5 an hour, compared to homes in the East Midlands increasing by £0.53 an hour, and the North West increasing by £0.03 an hour.
It is evident that anywhere within an hour’s commute of the capital will become affected by the spiralling London prices, and with transport links into the city improving all the time, we are seeing these areas spreading further out on an almost daily basis.
We anticipate the market will continue to climb until at least April 2017, thanks in no small part to the changes that were announced by Chancellor George Osborne this month surrounding buy-to-let mortgages. The serious changes to the way that buy-to-let mortgages will be managed from April 2016 will make it significantly harder for many landlords to secure high loan-to-value mortgages.
However, tenant demand is still high, with properties being let for premium rents very quickly. With such a healthy rental market, we would expect a surge in price of ‘first time buyer’ properties, over the next couple of months as landlords rush to make the most of the little time they have left to secure ‘easy’ mortgages, causing them to challenge first-time buyers for smaller, low maintenance properties.”