First post-brexit house price growth figures have been released, and they offer positive news for UK developers.
Yesterday, the Office of National Statistics (ONS) released their house price index for July. This is the first time figures of post-brexit house price growth have been released. We analysed the figures to see what UK developers can take from the latest figures.
Annual House Price Growth 8.3%
While the month of July is down on June’s performance, the 8.3% figure means that July is in the top three months for house price growth over the past 12 months. A very impressive stat considering the initial predictions made for a post-brexit July.
House price growth means that a new record average UK house price has been set, again. The average UK property sold for over £216,000 in July. That comes to just over £200,000 in 2016.
South East House Prices and property developers
The developers we deal with have more reason to be pleased than those throughout the rest of the UK. Our development finance loans are tailored to the southern market. South East house price growth continues to push well-over the 11% mark.
Currently, the average house price in the south east is £313,000. If the current rate of growth remains the similar over the next 12 months, the average south east property could be worth around £350,000.
What this means for our Property Development Finance
At Hunter Finance we continue to offer property development loans to property developers because of the positive outlook of the UK property market.
Additional Reading: Commercial Property 2017 by Anne Roddell