This is the astonishing amount house prices have risen each day for the last 6 months!

The UK property market is currently on fire. Here is how much house prices have risen each day for the last six months, according to Zoopla.

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

For sale sign outside a home in an affluent suburb of London

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

The UK property market has undoubtedly been on a wild ride recently. Over the past year, house prices have risen at record pace and reached levels that were previously unheard of. Property website Zoopla has calculated how much house prices have risen each day for the last six months, and the figure is nothing short of astonishing.

Here’s everything you need to know.

[top_pitch]

What’s happening to UK house prices?

In the last six months alone, Zoopla says that house prices have increased by a staggering £44 per day. This is up from the daily increase of £30 in the six months before that (July 2020 to January 2021).

This, according to Zoopla, means that house prices have risen by 6.1% over the past year to the end of August. That’s more than double the rate of annual house price growth seen in August 2020 (2.8%). The average value of a home across the UK is now £235,000.

Regionally, Wales recorded the highest price growth rate at 9.8% in the year to August. This was followed by Northern Ireland at 8.4% and North West England at 8%.

Meanwhile, Liverpool experienced the highest price growth of all major UK cities, with average prices up 9.8% in the 12 months to September. Other cities that also recorded high growth were Manchester (8.1%) and Sheffield (7.6%).

Zoopla also reports that buyer demand remains incredibly high. It was 35% higher in September than the average for the past five years. This has likely been fuelled by the ‘race for space’ that has seen families looking for bigger homes.

[middle_pitch]

What does the future hold for house prices?

Though the end of the Stamp Duty holiday and the government’s furlough scheme are likely to dampen buyer demand, Zoopla expects house price growth to remain in positive territory, albeit at lower levels than now.

According to Grainne Gilmore, head of research at Zoopla, “The demand coming from buyers searching for space, and making lifestyle changes after consecutive lockdowns, has further to run.”

She adds that stock levels are likely to start rebuilding in early 2022 as market activity goes back to more normal levels.

What does the current state of the market mean for buyers?

If you’re an aspiring homeowner, the new figures from Zoopla are somewhat depressing. In the current market, you will almost certainly have to pay a premium for your new home. That means a larger deposit and a larger mortgage debt.

And with demand remaining high and supply being low, you are also likely to face stiff competition from other buyers. A low supply of homes also means that you will have fewer choices, and it’s likely you’ll need to make compromises to find the right home.

However, there is a bit of good news. Mortgage rates have plummeted and are currently at historic lows. If you’re able to snag a mortgage with a low interest rate, then your monthly mortgage repayments will be relatively low.

Additionally, there are several government incentives and schemes in place to help buyers get on the property ladder. These include the mortgage guarantee scheme and the Help to Buy: Equity Loan scheme. Both of these initiatives can help you get a mortgage with just a 5% deposit.

And if you are aged between 18 and 39, you can also use a lifetime ISA (LISA) to save efficiently for your first home. You can put up to £4,000 a year into the ISA and get a 25% bonus from the government, up to a maximum of £1,000. You can open a lifetime ISA at a bank, a building society or an investing solutions provider.

In a nutshell, while today’s housing market might be challenging for many, it’s not completely hopeless and you have options.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

More on Personal Finance

Note paper with question mark on orange background
Personal Finance

Should you invest your ISA in a model portfolio?

Which model ISA portfolios offer both high performance and low fees? Hargreaves Lansdown, Interactive Investor and AJ Bell go under…

Read more »

Economic Uncertainty Ahead Sign With Stormy Background
Personal Finance

Is it time to exit emerging markets investments?

Investors may well be sitting on losses from emerging markets funds. Is it worth keeping the faith for a sustained…

Read more »

Personal Finance

Share trading? Three shares with turnaround potential

Share trading has been difficult in 2022, but which companies have turnaround potential? Jo Groves takes a closer look at…

Read more »

Man using credit card and smartphone for purchasing goods online.
Personal Finance

Revealed! Why Gen Z may be the savviest generation when it comes to credit cards

New research reveals that Gen Z may be the most astute when it comes to credit cards. But why? And…

Read more »

Environmental technology concept.
Personal Finance

The 10 best-performing sectors for ISA investors

The best-performing sectors over the past year invested in real assets such as infrastructure, but is this trend set to…

Read more »

Road sign warning of a risk ahead
Personal Finance

Recession risk ‘on the rise’: is it time for investors to worry?

A major global bank has suggested the risk of a recession in the UK is 'on the rise'. So, should…

Read more »

pensive bearded business man sitting on chair looking out of the window
Personal Finance

1 in 4 cutting back on investments amid cost of living crisis

New research shows one in four investors have cut back on their investing contributions to cope with the rising cost…

Read more »

Image of person checking their shares portfolio on mobile phone and computer
Personal Finance

The 10 most popular stocks among UK investors so far this year

As the new tax year kicks off, here's a look at some of the most popular stocks among UK investors…

Read more »