UK sees house price boost after election
House prices in the UK have seen a 3% increase since the Conservatives won a majority election back in May.
A new report from property website, Rightmove, has shown that the average asking price has jumped to a new record high of £294,351. This is an increase of £8,460 from the previous month, making it the biggest recorded monthly rise.
The North West also hit a new record with prices averaging £176,067 in June, an annual increase of 2.2%. A further five out of the ten regions in the UK also saw all an time high in house prices.
The price increase is believed to have been a result of buyers rushing to purchase homes after the Conservative party won by a majority verdict. Record low mortgage rates and a growing number of approvals are also thought to have contributed to an increase in house sales.
Graham Davidson, Managing Director of Sequre Property Investment, comments on the record high house prices:
“The record high prices certainly reflect the faith that has been brought back into the market since the election. Landlords in particular are more confident as there are no longer fears of sudden changes which could affect their assets. The increase in sales has also increased house prices which, in turn, allows for a great return on investment as investors gain from capital growth. With a Conservative government guaranteed for the next 5 years, this is likely to continue into the future, so those looking to invest now could really look to gain from the future movement in the property market.”
“News of higher prices in the North are no doubt a result of the continued slowdown we have been seeing in the London market. Prices have become simply unaffordable and the lower yields don’t allow for a strong investment. Investors instead are turning to Northern cities that offer better returns such as Manchester and Liverpool, and a surge in prices has occurred as a result.”
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