“The 14 per cent jump in the average house price paid for a new house in the year to November underlines the current supply pressures in the housing market. In London demand is greatest and supply is lower and costs nearly 10 times average earnings. While the government’s new initiative to construct 400,000 affordable new homes by 2020 is extremely positive, supply side measures tend to move more slowly than demand side policies, and we are likely to see a delay before increased levels of housing stock have a significant effect on the market.
“With housing wealth owned by UK landlords, overtaking those held by mortgaged owner-occupiers, more is spent on rent in Great Britain each year than on mortgage costs. However, figures from Countrywide showed that rents in the centre of London rose just 0.5% in 2015, with the most recent data from Rightmove showing a 13 per cent increase in the number of newly-marketed properties being listed for sale in the capital compared to the same time last year.”
For further enquiries, journalists can contact:
Johnathan Priestley, Cicero Group
Phone: 0207 297 5954
Rachael Snelling, Aldermore
Phone: 0208 1853 102
Notes to editors:
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