In the current climate of uncertainty, it can be hard to know what’s best for our future. The Yorkshire property market is still going through a period of uncertainty following the Brexit vote, with many commentators claiming there is a housing bubble in the region.
However, are house prices skyrocketing in Yorkshire? If they are, what does that mean for us as buyers and sellers? We’ve taken a look at the data and have put together this article to help you determine if house prices are heading North or South!
Typically, house prices in Yorkshire have been rising in recent years, with house prices in the region around 10% on average since 2017. The increase in house prices is likely to be due to many factors:
Rising Demand for Housing
The rising demand for housing is the major reason why house prices in Yorkshire have increased over the past few years.
The main reason behind this is that people are looking for an affordable place to live, so they will have to look for houses in Yorkshire. The other reason is that more people are living in Yorkshire than before.
The key thing about these two reasons is that they both mean more people will be looking for houses. There are now more families moving into Yorkshire than ever before.
As such, it implies that there will be a lot of new homes being built, which means that more people will be able to buy and sell them later.
Again, this means that house prices can continue rising steadily because there will always be a demand for houses, no matter how high or low they may be at any given time.
Rising Household Income Levels
The increase in house prices is not just a result of rising house prices but also a reflection of the increase in household income levels. The average house price in Yorkshire has increased by £14,000 since 2013 and £10,000 since 2010. Such is largely due to increases in average mortgage rates and house prices.
Yorkshire’s average mortgage rate rose from 3.2% at the start of 2012 to 4.1% at the start of 2017, which has contributed significantly to the increase in house prices over this period.
The main reason is that people are getting better jobs and earning more money. More importantly, they can afford to buy a house – or at least an average two-bedroom property. One can take advantage of Yorkshire conveyancing solicitor services to finalise a property of their choice.
Ready Market for the New Homes
Yorkshire is a prime example of how the housing market is changing, with house prices rising at almost twice the rate of wages.
With the average house price now £191,000 and rents having risen by £60 a month over the last year, it’s clear that there are a lot of people looking to buy property in this part of the country.
Yorkshire has been experiencing an increase in house prices because more houses are available for sale than there have been for some time. Such can be attributed to increased demand from people wanting to move into rural areas and those wanting to downsize from their existing homes.
One of the main reasons for this is that more houses are being built than ever before. It’s estimated that around 15,000 new homes will get constructed in Yorkshire in 2022 alone – that’s around 200 per week!
In Summary
The takeaway from this post is that housing prices are going up in Yorkshire more than the average. This increase is because housing demand is rising as well, and supply isn’t increasing at the same rate. Eventually, this leads to an increase in prices.
There are different factors contributing to the housing situation in Yorkshire, and there is, at the moment, no quick fix. It is encouraging that there seems to be progress regarding house building, meaning that the current crisis might not be as long-lasting as everyone feared.
Ultimately, it will come down to understanding why house prices are currently rising in this region. With that being said, one thing is for certain: if you are planning on buying a new family home soon, it will cost you a good chunk of change.