The average house price in the UK has hit just under £250,000, according to Nationwide’s latest house price index. August saw house price growth increase by a whopping 11 percent after a slight downturn in July. Month-on-month, house prices increased by 2.1 percent, marking the second largest gain in 15 years.
With the stamp duty holiday tapering off, it was thought that house prices would begin to drop off.
However, it seems those buying property priced between £125,000 and £250,000 who are looking to take advantage of the stamp duty relief in place until the end of September.
So what’s next for the property market and house prices across the UK?
New research from comparethemarket.com, which analysed ONS data from 1992 to 2020 combined with a forecasting model, has found that by 2031, house prices in Greater London are predicted to increase by a third (33 percent).
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The site also looked at the average age of first-time buyers across the UK, dating back to 2006.
The average age of a first time buyer is currently 35 in London but by 2031, this is likely to increase to 37.
The rest of the UK could see the average age increase by 1.6 to almost 35.
Comparethemarket.com also polled homeowners who purchased a property in the last 10 years.
Just under half of homeowners bought their property with their partner, with half saying they would do the same if they were to move again.
First time buyers who had financial help from parents or grandparents borrowed £8,635.14 while current buyers receive £8,346.15.
When asked if they would do anything different when buying their first home now, almost a quarter said they would spend more.
One in five said they would buy a bigger first home.
Interestingly, 20 percent wouldn’t change anything about their home.
Those who have bought recently or are planning to soon, the size of the house (63 percent), the location (58 percent) and how expensive it is (31 percent) were voted as the most important considerations.
Commenting on the findings, Chris King, head of home insurance at comparethemarket.com, said it’s interesting to see how buying habits have remained almost the same.
He said: “Despite house prices seeing an all-time high and the average age of first-time buyers set to increase over the next ten years, it’s interesting to see that buying habits have remained similar.
“For those who are yet to buy but are planning on doing so in the future, it’s important that you take out the correct insurance policies, ensuring that both your home and contents are covered ready for when you move in, should the worst happen.”