House prices at the start of 2020 have surged in every region of the UK for the first time in two years, according to Land Registry/ONS data, indicating that the housing market is gradually returning to normalcy. Rightmove also saw the largest month-on-month increase in January prices since the launch of its house price index in 2002.
A 13-month high in UK house prices of 2.2 per cent, reported in December 2019, was echoed by Rightmove’s statistics demonstrating a 2.3 per cent increase with average UK property prices reaching £306,810.
Sentiment is especially positive in the new-build sector which, relative to the wider housing market, has experienced heightened transaction volumes. Market demand for such properties has risen due (in part) to the diversity of locations, financing access, and competitive cost structures opening up new opportunities for buyers.
Strawberry Star with developments across commuter towns such as Luton and Harlowand in Greater London areas like Southall and Wandsworth has launched a unique buyer-oriented product– ‘Reserve to Buy’. It enables buyers to raise part of the money to ‘reserve’ the purchase of an apartment well ahead of time, these buyers are then better able to amortize costs over the long term and receive government assistance to afford the rest of the purchase.
It is an appropriate time to buy a residential unit in the UK. Land Registry data is based on completions, hence offering the most accuracy & reliability. Looking ahead, there is the potential for the Bank of England to cut interest rates in the upcoming spring budget on 11th March 2020 – this would fuel buyer demand further. Moreover, both Zoopla and the Royal Institute of Chartered Surveyors (RICS) predict ongoing medium-term growth, with an average 2 per cent rise in house prices in 2020.
Average house prices increased over the year in England to £252,000 (2.2%), Wales to £166,000 (2.2%), Scotland to £152,000 (2.2%) and Northern Ireland to £140,000 (2.5%).