House prices have gone through the roof accelerating over 187 percent since from February 1996 reports Halifax Britains largest mortgage lender. Stock market investors will be crying into their Financial Times at the UK house price news. Comparing the UK stock market to bricks and mortar property investment has outstripped the stock markets investments hands down.
UK property prices have soared at more than three times the rate of stock market returns in the past decade, Property values tripled Property values have tripled in three regions: London house prices have soared by 240 percent, Northern Ireland by 231 percent and south-west England by 213 percent. Tim Crawford, group economist at Halifax, Britain's largest mortgage lender. "The premium for living in London has increased over the last ten years, as the average property price in the capital has more than tripled,"
On an annual basis, property prices have increased by 10.6 percent, outstripping a 4.6 percent rise in equities, a 4.2 percent lift in earnings and a 2.6 percent increase in retail prices. The average house price stood at 179,425 pounds in the third quarter of 2006, up from just 62,453 pounds in the first quarter of 1996. Prices have gone mad in the South Greater London saw the largest regional rise (240%) and Cornwall is the county where prices have risen fastest (274%). "The South West has emerged as a highly sought after destination, led by Cornwall," said Tim Crawford, an economist at the Halifax.
London house prices shock
Last month London Evening Standard newspaper reported that Hometrack the UK house price monitors show that the value of homes in the capital went up by an average of £2500 in the month from august 06 to September 06. London home owners are laughing all the way to the bank. However this is only part of the picture property in Kensington and Chelsea rose on average by £10,000 in the same period. First Time buyers struggle First time buyers have become even more disillusioned by figures recently released by the Council of Mortgage Lenders. The share of first-timers paying the government stamp duty has jumped from 48 per cent to 56 per cent within a year. Michael Coogan, the CML's director-general reports “Overall, affordability has worsened, especially for first-time buyers,"
London house prices force group buying
Group buying of a homes in London seem to be the only way forward for those stepping onto the property ladder. Head of mortgages at HSBC, Carina Kemp, says: "At HSBC we have seen a 50 per cent increase in group mortgage applications this year alone. More and more people are getting round high property prices by clubbing together with friends or family to buy a home and this is a trend which we expect to continue. Most group buyers opt to become "tenants in common" which means that each party holds separate shares in the property. This should take into consideration how much each party is putting into the property, both in terms of the deposit and the monthly mortgage payments
UK Property websites news
Primelocation.com the property web site indicate that in London luxury property has hit new record highs rising by 11.7 per cent annually, to reach an average of £969,288
Rightmove property web site director Miles Shipside said: 'London hasn't been affected by seasonal factors and is not experiencing the traditional highs and lows of the summer property market. 'We expect prices to slow down due to increasingly stretched affordability constraints, the rise in utility bills, the higher interest rates and the massive increases in Tube fares. 'However, some affluent London buyers are not subject to the usual financial restrictions, so prices in some parts of central London could continue to rise while everywhere else is standing still.
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