Members of the professional middle class in England and Wales have seen a rapid decline in their options when looking for a place to buy a house. The number of electoral wards where the average property price is above the affordability threshold has risen from just 101 (1.1 per cent) in 1995 to 489 (5.7 per cent) in 2012.
Aberdeen’s economy is booming. The gateway to Britain’s offshore oil and gas reserves, it has long helped to buoy up Scotland’s economy. And now with a wider economic recovery kicking in, it’s acting like Viagra on the area’s house prices.
Property values in Aberdeen and the surrounding area grew faster than anywhere else in the UK in 2013, according to new data produced by estate agents Savills exclusively for the FT.
Aberdeen has even outpaced last year’s hotspot, Elmbridge in Surrey.
House prices in Britain may be booming once more.
But unlike the bubble of the last decade, this one is very narrowly focused. In fact, it’s really only London that’s seen any growth since the previous national average house price peak in 2008.
Good news for Londoners. But they should put down the champagne: in fact, most of them haven’t benefited that much at all.
Most areas have seen some price growth since 2008. But there are just a handful of stand-out winners. And – yes, even in London – some people have actually seen their house prices fall.
The clearest winners are the two historic cities: London and Westminster. Yes, prices there really have soared since 2008. The average house price in Westminster topped £1m for the first time last year and is now at £1.3m; up from £746,000 five years earlier.
Perhaps more surprisingly, two rather more down-at-heel boroughs, Southwark and Hackney, are also seeing booming prices. They’ve even managed to push perhaps the most desirable borough of them all, Kensington & Chelsea, into fifth place.
by Claire Jones and Kate Allen
As today’s FT reports, the Royal Institution of Chartered Surveyors’ latest poll of their members shows that the industry is very optimistic. They believe that activity in the housing market will rise dramatically in the coming months.
But how confident should we be that the surveyors have got it right?
The UK’s main house price indices have been diverging noticeably in recent years, as this blog pointed out last week. A look at the trends in housing sales helps explain why.
Here are some useful charts from housing data firm Hometrack.
An interesting picture of the changing face of the UK housing market is provided by an analysis of census data by estate agency Savills, given exclusively to the FT.
The private rented sector is the main success story – it’s the only part of the market to have increased in value since the recession, and now makes up 17 per cent of the UK’s housing stock by units and 18 per cent by value, Savills found.