There has been a rise in the average value of property in the UK during the first half of 2017, but this growth is considerably less than that experienced over the same period last year.
According to property website Zoopla, the total value of the British property market has grown by 1.10% (or £88 billion) since the start of the year to almost £8.1 trillion, compared to a rise of 5.28% (£410 billion) in 2016.
Rise in Value of Average Home
The figures also show that the average British home has risen in value by just £3,039 since January (or £16.79 per day), which is around £10,000 less than last year, when the average property increased by £13,852 over the same six-month period (or £76.11 per day).
The average British home is now valued at £304,469, with properties in the West Midlands increasing the most in value over the first half of the year from £212,024 to £217,534 (2.6%). This region is closely followed by the East of England and Scotland, with average property price increases of 2.52% and 1.74% respectively.
Important Factors for House Hunters
Zoopla’s keyword search data reveals that house hunters are looking for properties with plenty of parking and external space as the top searches so far in 2017 are “garage”, “parking” and “detached”. “Garage” takes the top spot for the first time, overtaking “garden”, while “parking” has climbed from fourth to second place. When it comes to location, London, Edinburgh and Bristol are the most popular location searches so far in 2017 – the first time Bristol has appeared in the top 10.
“Whilst the rate of growth has slowed to a more modest rate, we’re not seeing the stark downturn in values that has been predicted,” commented Lawrence Hall, spokesperson for Zoopla. “Whilst this slowdown might not be what homeowners want to hear, a slowdown does present a possible opportunity for those looking to get on the ladder by the end of the year.”
Scottish Housing Market
A greater insight into the Scottish property market has been provided by the latest UK House Price Index, which reveals that the average price of a property in Scotland in May 2017 was £143,106 – an increase of 3.5% on May in the previous year and an increase of 0.7% when compared to the previous month.
The volume of residential sales in Scotland in March 2017 was 9,144 – a decrease of 17.0% on March 2016 but an increase of 60.4% on the previous month. This compares with annual decreases in sales volumes of 44.3% in England, 35.5% in Wales and 28.5% in Northern Ireland.
Across Scotland, all property types showed an increase in average price in May 2017 when compared with the same month in the previous year. Detached properties showed the biggest increase, rising by 6.0% to £245,888.
“Average prices in May continued their upward trend when compared with May 2016,” said Registers of Scotland business development and information director Kenny Crawford. “There have been increases in every month since March 2016 when compared with the same month of the previous year.”
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