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North West England leading UK housing boom with property prices up 15%

North West England leading UK housing boom with property prices up 15%
North West England leading UK housing boom with property prices up 15%

Property prices have increased sharply throughout the UK, with the North West of England reportedly seeing a 15% increase in year to May. According to official government statistics, property prices in the North East of England, Scotland, and Wales have also risen at a high rate.

In May, the Office for National Statistics (ONS) reported that the average home in the United Kingdom costs £255,000. It was £23,000 higher than the average price a year ago. The increase of 10% was the fastest in over 14 years.

So far through this year, real estate agents have reported an immense property demand from buyers.

Prices picked up when many potential buyers wanted to make their purchases before the ending of the stamp duty holidays. The tax reductions for England, Wales, and Northern Ireland were still in effect in May.

As a result of the COVID-19 pandemic, people's priorities have shifted, now they are searching for larger houses in which they could live and work.

According to reports, house prices have also increased owing to a shortfall of houses being put on the market to meet demand. Most of the Royal Institution of Chartered Surveyors (RICS) members believe prices will continue to climb in 2022 for that reason.

Katie Cave, Clearpoint Finance Director, stated that the market was being fueled through valuable stamp duty savings, ultra-low mortgage rates, and people reconsidering what they need from their house because of the COVID-19 pandemic. Cave added, the demand was as high as the supply was down, which launched prices towards the sky.

The ONS reported that house prices in Great Britain grew by more than 10% in the year ending May. 

The North West was the area where annual house prices grew highest with average prices climbing 15.2%. Wales (up 13.3%), Scotland (up 12.1%), and the North East of England also increased greatly (up 11.8%).

Source credit: https://www.bbc.com/news/business-57834048

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