The house sales history in the UK ranges from an average of £197,600 in early 2007 to a drop of 17.6 percent in February of 2009 with an average house price of £157,600. This price drop was the most significant in years. In April of 2010, the prices increased by 10.5 percent making the average house price £167,000. Prices dropped in April 2011 from 10 percent to a negative 3.7 percent leaving the average house price at £161,000.
Since June 2011, house prices have climbed steadily upward with a few decreases along the way. However, the increase in June was 11.8 percent, but this number fell back to 10.6 percent in July. The average property price was £240,958 based on 785,000 property sales.
The average property price paid beginning in 1995 is £155,955. Over the past 7 years the average price was £223,676. Over the past year the average price was £240,958. These prices originate with Zoopla. Zoopla uses a highly sophisticated algorithm analysis for property data on 27 million UK homes to reach its evaluation.
The chief UK and European economist for IHS Global Insight, Howard Archer, said he expects that house prices will continue to rise over the coming months. As has been the situation in the past 24 months, he sees some moderation from the recent peaks.
First time home buyers who had stayed out of the house market since 2008 and are coming back which will help hose sales and the new demand may increase prices further. However, the Guardian reported on July 23, 2014 that the 4 million households renting paid an average of £163 a week for their homes. The 7.2 million households using a mortgage to buy their home paid £149 a week. Ownership of a home has fallen to its lowest level in 25 years. This could be considered pent up demand or it may mean that most renters will never escape the rent trap.
There is speculation that has been reported in the August 10, 2014 Telegraph that many homeowners may try to sell their homes to take advantage of what they see as profit from the price increases. One cannot help but wonder where they will buy and hold onto the “profit.”