According to data from TwentyEA, property prices for exchanged properties have risen by an average of 3.8% over the past year and 22% since 2019, with a compound annual growth rate (CAGR) of 4% per annum. This indicates a consistent upward trend in property values. The gap between initial asking prices and exchanged prices has remained relatively stable over the past four years.
- Exchanged Property Prices:
- Over the past year, the prices of properties that have been officially exchanged (basically agreed upon by both seller and buyer) have risen by 3.8%.
- From 2019 to now, they’ve shot up by 22%, which, if you break it down yearly, is an average increase of 4% every year.
- Asking vs. Exchanged Prices:
- When people first put their houses up for sale, they have an “asking price”. The difference between this asking price and the final exchanged price is nearly the same now as it was 4 years ago.
- Regional Highlights:
- Four out of ten regions in England saw their property prices increase by at least 5% this year.
- This trend isn’t just in England; Northern Ireland and Scotland are seeing similar patterns.
- Northern Ireland tops the list with a whopping 8.4% growth in prices. Other regions like the South West, inner London, East of England, the North West, and Scotland have also achieved growth over 5%.
- All UK regions saw their property prices increase by at least 3% except for Wales and the West Midlands. The West Midlands experienced the smallest growth, at 2.5%.
- Instruction Prices:
- These are the initial prices set when selling. The biggest increase was in Northern Ireland with 7%. The North West, Scotland, and Yorkshire and the Humber also saw significant growth.
- To give you a clearer picture, the increase in prices means that, on average, UK properties are worth £13,000 more than last year, and £64,000 more than in 2019.
- From 2019 till now, these asking prices have gone up by 24%, which averages out to 4.4% every year.
- Expert Insight:
- Katy Billany from TwentyEA pointed out, “Despite the numerous gloomy headlines we’ve read over the last few months, instruction prices and exchanged prices have continued to rise across the UK with four out of the 10 regions in England all seeing growth in exchanged prices of 5% or more, a trend also evident in Scotland and Northern Ireland.”
- Additional Good News:
- Fewer property deals are falling through now compared to the start of the year. In fact, the number has decreased by 6% since March.
- The time it takes to finalize a property deal, the “time to exchange”, has been decreasing every month since February, reaching 113 days in July. This means property deals are getting done faster!
- The only region that saw an increase in deals not going through was Scotland. However, cheaper properties (those priced under £200,000) are now less likely to have their deals fall through compared to the previous year.
In a nutshell, despite various economic challenges, the UK property market is quite robust with prices on the rise in most regions. The process of buying and selling is also getting smoother and quicker.