In January, the house price growth picked up according to the Nationwide Building Society. From December 2017, to January 2018, it went up 6%, from 2.6% to 3.2% respectively. These figures were surprising due to the consumer confidence and activity within the UK.
In addition, in December mortgage approvals were at their weakest in 3 years. With only 61,000 granted, yet compared to the past 12 months with the average being 67,000 approvals.
However, analysts have stated that this rise in growth does not change the fundamental state of the UK housing market. And that consumer confidence is still low and is not due to increase anytime soon, unless dramatic changes are made.
The average price of a house reached to £211,756 last month, according to the building society’s month survey. This meant that property values were up 0.6% from December, however the annual growth rate increased, which is the highest since March 2017 (which was 3.5%).
How has this affected home ownership?
Home ownership is still at a 30-year low. In the latest survey (2016/17), out of 22.8 million houses in the UK, only 14.4 million (62.6%) were owner occupiers. This was down again since 2015/16, with a percentage of 62.9% for home ownership.
Of this recent survey, young adults (aged 25 to 34), were of the lowest who owned their own property. With only 37% of young adults owned their home.
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