The most recent figures from the Office for National Statistics (ONS) reveal that house prices are continuing to climb strongly this year. In fact the typical house price increased by 8.3% in the 12 months to July, which is almost 3.5 times the average wage growth in the UK of 2.4%.
The average home was worth £217,000 in July 2016, compared to £200,000 in July 2015. In just 12 months the average UK property has climbed in value by £17,000. In fact, it’s £1,000 higher than the 12 months leading up to June, when the referendum result was announced.
And where will prices go next? The Royal Institution of Chartered Surveyors (RICS), one of the few bodies to make predictions about what to expect, surveyed its members and found they expect prices to keep on rising.
They predict a rise of 3.3% on average for the next five years. If they are right then the house worth £217,000 today will be worth more than £255,000 by 2021.