UK housing prices increased by 0.6 percent in August, according to new data from building society Nationwide. The price increase is the latest in a long-term surge in property pricing across the UK, particularly in London and South East England.
August was reportedly a slow month for housing prices, with costs rising just 0.6 percent compared to July. However, housing prices are up 3.5 percent in the last twelve months alone, according to the building society.
The average UK house is now worth over £170,000, according to the data. Higher employment figures and increased consumer confidence are causing a long-term increase in the average UK house price.
Other factors affecting UK home prices include increased availability of affordable mortgages, according to Nationwide chief economist Robert Gardner. The average UK house now costs more than it did in 2010, the building society claims.
Using three-month on three-month price comparison, thought of as a more accurate way to measure long-term price increases, the average UK home is now 1.4 percent more expensive than it was previously.
Despite the overall price increase, certain regions of the UK have fared better than others. London has seen the largest surge in pricing, with home prices surging 6.3 percent over the past twelve months to July.
In other parts of the country, prices actually decreased. Northeast England saw its average property price decline in the past twelve months, as did Yorkshire, Wales, and the Humber.
An increasing number of first-time buyers are investing in UK property. Nationwide estimates that over 45 percent of mortgages were made out to first-time customers in the second quarter – the highest figures on record since before the financial crisis.
Real estate experts have warned that first-time homebuyers need to plan carefully before purchasing property. If interest rates rise, homeowners could struggle with mortgage payments that they had not previously planned for.
