UK house prices have hit a growth rate of nearly 5% according to the Office for National Statistics. This is a welcomed sign for citizens as the ongoing political turmoil has taken its toll on the housing market for more than a year. 5% is not a great rate by any stretch of the imagination, but it is a sign that the market is stable despite peril.
The biggest reason for the jump is the prices in England. The current average cost for a home in England is £239,470 or nearly double the average price of a home in nearby Wales. Kensington and Chelsea proved to be the most expensive areas in London. House prices are averaging nearly $2 million in those two ritzy areas. Overall, the average home has risen £3,025.35 in value collectively.
Other areas outside of England continue to struggle. Prices in Scotland have risen to 3.5% for an average house price of £143,837. Northern Ireland saw slow growth at 4.3% as well. Experts predict the remainder of the year will grow at a slower rate, with some estimating 1.5% by the end of the year.
Without a doubt, the UK’s ongoing Brexit negotiations are to blame for the rough housing market. With the country in political upheaval, most markets have stalled. Just this March, housing transactions slipped to 41% year-on-year. Other pundits believe only a certain few hotspots will see growth, leaving the majority of the country behind.
Citizens’ rights is the newest issue to arise during the Brexit negotiations between the UK and EU. There have been many questions raised by the union regarding cross-border living situations. How will the UK treat citizens living abroad and how will the EU deal with its citizens living in UK territory? The two sides must also hammer out rights and regulations for children born to EU citizens in the UK. Birth and marriage rights will likely need to be decided before an economic agreement is reached.