Asking prices have increased by 0.6 percent in August, according to Nationwide’s figures.
With an increase in demand and descending supply levels shooting up values of the nation’s housing, has brought a change in the outlook of home ownership. While older generations get a much closer reach to own homes, youngsters find themselves struggling to reach the first time buyer property ladder.
- The only element that is progressing in this scenario are – Prices.
According to the office for National Statistics, the average UK house price was £214,000 in June this year comparatively which was £24,000 more than during its pre economic downturn during September 2007.
- Comparison of Wages – An equally important element in the UK housing market is not only about its prices but also the comparison of Wages.
According to the Trades Union Congress, real wages in the UK have dropped massively by 0.6 percent from the years following the financial crises. This as a result has created a gap between real wages and house prices.
The gulf has shown an eagerness to expand in London with ratios increasing from 3.7 to 9 times of average incomes.
- Ageing homeowners – According to current housing conditions, home ownership has been rising regularly among the older generations. For instance, in 1981, half of the 65 -74 age group were home owners. By 2014, the figures went up to 78.6 percent.
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