Estate agents are warning that the housing market will soon be in crisis, following news that the average UK property rose in price by £10,000 last year.
Haart chief executive Paul Smith has warned the Telegraph: “Along with consumer price hikes and falling wage growth, unaffordability is reaching crisis point.”
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Average UK property prices rocket
The average UK property price hovered at £223,257 in June, according to the Office for National Statistics, compared with £214,000 in the same month the previous year. Properties are gaining by £2,000 on a monthly basis.
But other economic indicators are lagging, with wage growth slowing dramatically and inflation on the rise.
Market watchers have long been warning that this combination will ensure that buying a home becomes ever further out of reach for average Britons.
The biggest price rise during the year was seen in the east of England, where the average property gained 7.2 per cent to £286,623. The East Midlands was close behind, recording a 7.1 per cent increase.
London falling back
But the rises were not uniform. Prices in London actually fell by 0.7 per cent in June, although the average property in the capital still costs £481,556. In the City of London, one of the most affluent areas in the country, house prices fell by a dramatic 20 per cent.
Meanwhile a separate report from RICS showed that market activity has seen a dramatic slowdown, thanks in great part to collapsing demand in London and the South East.
Commenting on the ONS survey, PwC senior economist Richard Snook said: “There has been much reflection about the ten-year anniversary of the global financial crisis, and housing market performance over this period highlights the disparate performance across different parts of the UK.”