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

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

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.

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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.

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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.

The post This is the astonishing amount house prices have risen each day for the last 6 months! appeared first on The Motley Fool UK.

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