House prices remain a hotly debated topic amongst industry professionals and property developers alike. The latest house price index figures remain positive as the current market looks to be stronger than any other point over the past 12 months.
Brexit fears haven’t touched UK house prices
Fears over a crash in UK house prices have dominated recent tabloid headlines. Stamp duty charge changes and the European Union referendum have caused uncertainty to spread throughout the market. While speculation remains, the latest house price index figures from the Office of National Statistics (ONS) don’t lie.
Annual house price growth at 8.5%
Before we look at how the local market has been affected, and what that means for south-east property developers, we can assess how the UK is coping with the latest housing fears. Over the past, 12-months house prices have grown by 8.5% nation-wide. This is the highest rate of growth since October 2014.
To put this percentage into perspective, the average house price in April 2015 was £193,225. As of April this year that figure has risen to £209,054.
The average price of a UK house over the past 10 years
Source: Office of National Statistics
How south-east house prices compare
In the south east of England house prices have risen annually by 12.3%. That is almost 4% higher than the average for the UK and only third behind London and East England. London having the highest annual rise in house prices of 14.5%.
To put this figure into perspective, the average house price in April 2015 was £268,550. As of April this year that figure is now a staggering £301,689.
House price conclusions for 2016
At Hunter Finance, enquiries from property developers for property development loans has increased over the past few months. So while fears remain over the future of the market regarding house prices, most developers are not deterred to start and complete new development projects across the south of England and London.
This is not to say that we will not be keeping an eye on the results of the impending European Union referendum and how that impacts the property market for the rest of 2016. For now, we look forward to the next couple of months and the prospect of funding over 20 new property developments projects.