House Prices And Rental Rates Across The Uk

By Author: James Walsh
Total Articles: 68
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I always dreamt of owning my own house in Greater London. My moderate income and huge responsibility to take care of a large family prevented me from taking a mortgage since I would not be able to pay the interest every month. However, I was so happy when I inherited an ancestral property at Hull. It was a huge property and I decided to sell it off and buy an apartment in Greater London. Although I knew that there was price difference between the two regions, I was not prepared for the shock. I was taken aback when I found that the proceeds from the sale of my 5-bedroom house in Hull would not be enough to even get a decent 2-bedroom apartment in London. I wonder if my dream could ever become a reality.

Reasons Contributing to the Variations

House prices in the UK vary from one region to another. The real estate value in a region depends on a lot of factors such as:

Demographic conditions in an area determine housing demands. As the demand increases, the price of the property in that area also increases.

Proximity of facilities such as work place, good schools or colleges for children, etc.

Infrastructural ...
... facilities such as transportation determine the value of property in an area.

Natural attractions such as proximity to the seaside, beautiful landscape, etc are also a determining factor in high property values in a region compared to the others.

Interest rate in the region. When the interest rate falls, the house price in that region tends to increase.

Income of people in a region. For example, in places like London where people earn huge pay packages, the house prices would definitely be high compared to the areas inhabited by the poor.

Usually when a celebrity moves into a locality, the price of property in the area tends to shoot up.

Cost of House Vs its Location

Properties in Windsor and Mainhead are the costliest in the UK and are affordable only to the richest ones in the country. On the contrary, although Greater London is costlier than most of the other places in the UK, it strikes a balance between the cost and the facilities available in the region. Hence, it is the most favourite destination for people purchasing property.

There was a huge margin of difference in the property value between England, Ireland and Scotland. The property value in England was much higher than those in Scotland and Ireland. However, the scenario is rapidly changing. The house prices in Ireland and Scotland have been increasing much faster than the prices in England. The house price in Scotland went up more than 22% last year, while the highest growth rate was noticed in Northern Ireland with prices going up by about 55% during the same period. Compared to these, even a steep increase of 11% in England does not seem huge.

The reasons for the increasing property value in these regions are believed to be due to the increase in employment and immigration from east European countries.

Today, if you have decided to purchase a property, you need to have a minimum of £100000 even if you intend to purchase a property in the cheapest area. This is because every single town in the region has the average house price exceeding the £100000 benchmark.

Comparison with the Rental Rates

Foreign immigrants and relocation of executives from different parts of the world has led to a growing need for accommodation in the UK. A lot of people prefer to rent a house rather than purchasing one either due to the soaring house price or owing to their temporary stay in the country. Since people prefer to rent an accommodation near their work place, the demand for the rental property increases around the industrial areas leading to an increase in the rental rates in the region.

Rental rates are the highest in London with the average price being around £920 per week. The rental prices in the UK are estimated to increase by about 10% every year. Although the rental rates are reasonably cheaper in Ireland, it is expected to go up with the increasing sales price.

With the commuting time averaging to just 25 minutes in the UK, it would be a better option to choose an accommodation in small towns near the work place to ensure a peaceful life and enjoy freedom from heavy real estate prices.

James Walsh is a freelance writer and copy editor. Choosing the right Mortgage is a decision that shouldn't be taken lightly, for more information on the options available, see http://www.which-mortgage.net