In a time when it is difficult to get clear signals on the UK property market is performing any information at all is always welcome.
A report that was released a few days ago by online estate agent Emoov contained some very interesting and surprising information, the report looked at how individual boroughs have performed.
During the period of June 2016 and June of this year the average growth in house prices across all of the UK is a very healthy 4.9%
London saw the least amount of capital growth during this period at a measely 2.9%, no way near the UK average, but growth all the same.
BEST PERFORMING BOROUGHS
- The best performing London Boroughs are Kensington and Chelsea, average house price increased by 12.8%, average house price in Kensington and Chelsea is £1.4 million!
- Second is Hackney, house prices are up 10%,
- Third is Camden with an 8.1% increase.
WORST PERFORMING BOROUGHS
- The City of London, was the worst performing UK property market with a fall of 20.3%
HOUSE PRICE TO EARNINGS RATIO
The house price to earnings ratio reached 5.80 in June 2016 which is the highest level since August 2007.
The figure for July came in at 5.65.
With wage inflation falling well behind the increases in the cost of living it seems almost inevitable that mortgage funding criteria has and will continue to tighten, meaning in turn we will see a fall in the short to medium term.
Indeed, it is common knowledge in the UK property world, and we all know that the Bank of England, as well as the central government has been excerting considerable pressure on the mortgage lenders to introduce more “headroom” space and ensure that customers are able to cover their liabilities, in even the direst of markets.
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