The sustained increase has been driven by a shortage of homes for sale and an increase in demand for larger homes linked to the “race for space” pandemic. According to Rightmove, the number of fully available homes for sale hit an all-time low in December. The set of rules that rented social housing must comply with the Decent Homes Standard will be extended to private sector rented housing. The real estate portal says that house price growth was 7.4% in the 12 months to December, and that the price of an average home has risen 25,500 pounds sterling in the last two years.
This has allowed first-time buyers to overcome impossible revenue multiples and buy despite expensive prices. He added that the stock of housing available in the market is also low, which is applying continued upward pressure on housing prices. If there are fewer cheap loans available, there could be less demand for housing, which could lead to a possible correction in the price of housing. This means that while it's possible to build enough houses for everyone, you can't build a house for everyone in the most desired locations.
Another 4 million (17% of households) live in the social rental sector, while 15.4 million (about 65%) own the house in which they live. The average UK home price soared to a record high of £260,230 last month, according to the latest data from Nationwide. He added that annual house price inflation in the United Kingdom was 7.4% in September, reversing a three-month downward trend. The high capital gains tax they then have to pay ensures that prices stay high, since they can't sell for less without making a loss.
In May, Zoopla said a £29,000 increase in house prices in a year has also caused 4.3 million homes to move to higher stamp duty brackets, meaning buyers will have to pay more to buy a property if they enter the market. The fall in house prices in July coincided with the start of a gradual reduction in the UK government's stamp duty holiday incentive. Therefore, high-end home prices are more comparable to works of art and other assets whose sole value is derived from the amount of money moving around the world at any given time. Reflecting other recent house price reports, the Halifax House Price Index for May shows signs of a cooling market, largely due to rising inflationary pressures fueling declining activity.