The Nationwide have released January’s UK House Price index which shows that the average cost of a home has remained largely static in the last 12 months. The average price in January 2018 was £211,756 while this months figure is £211,996 an increase of £240.
Much of this could be attributed to the uncertainty BREXIT, however, prices are still way above the long term average of price to average annual earnings. The Office of National Statistics (ONS) estimated the average income in 2018 to be £28,400 and using this figure houses cost 7.46 times income which is way above the long term trend.
Low-interest rates have probably aided this, but with more homes being built and a possible reduction in the population following BREXIT in whatever fashion it ends up being this could become the new norm, unless we see a massive spike in earnings.
Image Ewelina Wachala/Shutterstock
