UK property prices have jumped up £7,000 (GBP) in a month as UK property market activity picks up.
The huge increase in property values over the last four weeks is confirmation that the UK is enjoying another property boom.
The £1,750 weekly uplift puts the price of a typical residential three-bedroom semi detached property at £252,418 (GBP), according to popular property portal, Rightmove.
The biggest increase in property prices was recorded in London where new vendors have added an extra £50,484 (GBP) to average residential property asking prices this month, however property prices in the nation’s capital are over inflated compared to the rest of the UK.
The rise in UK property prices is being driven by first-time buyers and second step buyers following the introduction of the Government’s Help-To-Buy mortgage scheme.
Fears of a housing bubble have also been eased as the number of new property vendors entering the property market has also increased by 8%, however property shortages have driven up property prices in some UK regions.There is now a renewed sense of confidence about the UK economy and the introduction of Government incentives designed to kick start the UK’s property market are working, with more members of the public now able to get mortgage finance at higher loan-to-values are exceptional.
The Government have set aside £80 Billion (GBP) for the Funding For Lending Scheme and £12 Billion (GBP) for the Help-To-Buy scheme helping increase the total value of UK mortgage lending to a new five-year high.
Property buyers are taking advantage of the record low interest rates and slight relaxation of the borrowing criteria, taking the total cash value of mortgage loans to an estimated £49.3 Billion (GBP) in the three months to September, according to data from the Council of Mortgage Lenders.
The CML data shows that UK mortgage lending is 30% up on the same period last year and has reached the greatest quarterly total since autumn 2008.
Average residential property prices are now higher than at the peak of the last property boom seen in January 2008, according to the Office for National Statistics (ONS) which also revealed first-time buyer house price inflation is just under five per cent.
Miles Shipside, spokesman for Rightmove said: “Some estate agents currently report that there is a buying frenzy in parts of the UK with available property stock so low that their shelves are now bare. The Rightmove research to mid-October showed that across England and Wales property asking prices rose by 2.8% month-on-month, following two months of property price falls, to reach £252,418 on average. Property prices across the UK are 3.8% higher than they were in 2012.”
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