Good news and bad news for UK homeowners this month. The average house price went up by £1,815 in June, but while some parts of the country are booming, others are seeing prices fall.
The Nationwide House Price Index, which tracks what’s happening in the property market, says that house prices are now 1.5% higher than they were a year ago.
But this doesn’t mean everyone’s sitting on a gold mine.
Northern Ireland Races Ahead, While East Anglia Lags Behind
The biggest winners? Homeowners in Northern Ireland, where prices shot up by 4.1% in the last three months.
Meanwhile, if you live in East Anglia, you might want to look away now. House prices there have actually fallen by 1.8% compared to this time last year!
What’s Going On?
Experts reckon it’s all down to mortgage rates. They’re still much higher than they were a couple of years ago, which is putting people off buying.
Robert Gardner, a top economist at Nationwide, explains: “While wages have been going up, it’s not enough to make up for the extra money people are having to fork out on their mortgages.”
He reckons that someone buying their first home today would have to spend a whopping 37% of their take-home pay on mortgage repayments. That’s a lot of cash!
So, What Does This Mean For You?
Well, it depends where you live and what your plans are. If you’re thinking of selling your home in Northern Ireland, now might be a good time to cash in.
But if you’re in East Anglia, you might want to sit tight for a bit and see what happens.
Here’s the summary of house prices in different parts of the UK:
- Northern Ireland: Prices up 4.1%
- Wales: Prices up 1.4%
- Scotland: Prices up 1.4%
- Northern England: Prices up 2.4%
- Southern England: Prices down 0.3%
- London: Prices up 1.6%
- East Anglia: Prices down 1.8%
Keep an eye out for next month’s update to see how things are shaping up!