According to the latest UK House Price Index from the ONS and Land Registry, average house prices in the UK have increased by 6.2 per cent in the year to January 2017, up from 5.7 per cent in the year to December 2016, continuing the strong growth seen since the end of 2013. However, this still remains below the average annual house price growth seen in 2016 of 7.4 per cent.
The average UK house price was £218,000 in January 2017. This is £13,000 higher than in January 2016 and £1,000 higher than last month.
The main contribution to the increase in UK house prices came from England, where house prices increased by 6.5 per cent over the year to January 2017, with the average price there now £235,000.
An annual analysis by Lloyds Bank reveals that the rapid growth in house prices combined with slower wage growth, has led to homes in five UK cities (St Albans, Winchester, Chelmsford, Brighton and Hove, and Cambridge) costing more than 10 times the average local income.
The report, which calculates affordability ratings, comparing the costs of buying a home in an area with the average regional pay, shows that home affordability in the UK has hit a nine-year low.
Oxford is once again the least affordable city, with the average house costing £385,372, nearly 11 times average earnings.
At Beavis Morgan, we have extensive experience in advising individuals and businesses on all aspects of the property market. We act for a broad range of property investors and developers who actively need advice on how to best structure their property deals, both to ring-fence and protect their property assets, as well as to minimise the tax arising from their business operations.