House prices have increased by an average of 11% since the Brexit referendum, according to new research, with more than half of local authorities experiencing rises of at least 10%.
The housing market is on the up following a tumultuous few years following the referendum, in which political turmoil led to economic uncertainty for builders and one third of home improvement plans being cancelled.
On the one hand this is positive news for the housing sector, but for struggling first-time buyers unable to afford a deposit the news will be less well received. Last year it was revealed that the average two-bedroom property now has a national asking price of £193,103, and this could increase to £482,741 over the next 30 years.
First-time buyers struggling to get on to the housing ladder may find that self build offers them the opportunity to build their dream home, and often saving up to 30% on market value.
High Rise for House Prices
New research from Which? has examined data from the Land Registry to assess the house price changes in the 40 months following the EU referendum, and the 11% average increase has resulted in an average UK house price of £234,370.
Northern Ireland and Wales (13%) saw the biggest rises, while England experienced a rise of 9%, with Scotland slightly behind (8%).
Regionally, the biggest house prices increase was seen in the West Midlands (15%) and East Midlands (13%). In total, 391 local authorities across the UK were reviewed, with more than half experiencing house price increases between 10-20%. A third of local authorities saw rises of up to 10%.
Conversely, 25 local authorities saw house prices fall after the vote, with 19 of these areas in London or the South East of England, where houses are generally more expensive.
Will House Prices Keep Rising?
The Which? data further follows Rightmove’s research revealing house prices in the UK have increased by 2.3% since Boris Johnson’s General Election win in December. The housing market appears to be on the up in 2020, but there are upcoming hurdles that could test the market’s resolve.
The Spring Budget reveal on 11 March and prospective changes to interest rates could affect housing prices going forward, and while the UK has officially left the EU it is still in an economically uncertain transition period.
The construction sector is optimistic though: housing was named its best performing area in January, with construction output falling at its lowest rate since May 2019, and construction companies are reportedly most upbeat about their growth prospects since April 2018.