The Truth About House Prices in the UK: What’s Happeninpricg and How to Stay Ahead of the Curve

House prices have risen significantly over the last 25 years, making it difficult for first-time buyers to afford a home. Losing your house can have a significant impact on your financial security. The housing market has seen some exciting changes over the last few years. This post covers current trends and forecasts for the future.

First, let’s look at the current state of the UK housing market.

Current Trends in UK House Prices

House prices have risen significantly over the last 25 years. In 1992, UK house prices averaged around Β£121,000 (in 2015 pounds). Over the next decade and a half they increased by around Β£33,000 per year on average – which is a growth rate of 6% per year – before increasing by around Β£10,500 per year between 2002 and 2007 – which was just under 9% per year on average – before declining back down to around 5% per year since 2013. House prices are now significantly higher than they were in 1992 (even after adjusting for inflation), with average values now more than double what they were 25 years ago.

It’s worth noting that because both houses and mortgages are very different products now compared to 30 years ago, this doesn’t necessarily mean that UK house prices will continue growing at the same rate forever. Many factors can cause house prices to change, including changes in the economy, interest rates, and government policies. However, if house prices continue to grow at their current rate, they will double in value over the next 30 years. This means that if you bought a house today with a mortgage of Β£150,000 (around what people used to be able to afford), you would need to spend an average of Β£450,000 on it to break even!

The UK house price growth has been relatively steady for most of the time since 1992. From 2002 onwards, there was a slight dip as interest rates fell from over 7% per year down to around 3%, but this is unlikely to have had much impact on house price growth as it was only temporary and didn’t last very long. In recent years however, there has been a significant increase in house prices – which has happened despite falling interest rates – which is likely due to:

The fact that most people now want or need their own home;
The fact that more people are taking out mortgages than ever before; and
Prices are rising faster than incomes.

House Prices Will Continue To rising For The Next 30 Years.

If you wanted to buy a house with a mortgage of Β£150,000 today (the average amount most people can afford), you would need to spend an average of Β£1.3 million to break even over the next 30 years. This means that if you don’t want your home to cost more than Β£1.3 million in 30 years, you should probably start saving for it now!

Inflation Will Have Almost No Impact On House Prices

The UK house prices have increased yearly – before inflation – since 1992. If we look at the first few years, inflation was running around 10% per year, likely impacting how much money people spent on their new homes during that time. It’s clear that since 2009, housing costs have been growing at over 6% per year, and this is unlikely to change any time soon, thanks to interest rate cuts and government austerity policies. If you want your new home to cost less than Β£500,000 by 2037, you should probably start saving for it now.

Looking At The Future of UK House Prices

Many experts predict the UK housing market to continue rising for the foreseeable future. If you want your home to be worth more than Β£1 million in 30 years, you should probably start saving for it now.

If you like what you see!, leave a comment for Me!!

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Bizzimummy πŸ§šβ€β™€οΈ