The average price for a house in the UK has risen to £265k; however, the current cost of living crisis may slow growth to some extent in the near future.
New research carried out by the real estate sector has shown that average UK house prices hit a record high of £265,312 in March this year. Nevertheless, slowing demand may be on the verge of stopping runaway prices.
The price of a typical UK home rose by over £33,000 in the past year, with prices now 21 percent higher than before the pandemic struck in early 2020.
According to the Nationwide Building Society, annual house price growth increased to 14.3 percent in the year to March, with prices rising by 1.1 percent since February.
Commenting on the figures, Robert Gardner, Nationwide’s Chief Economist, said: “March saw a further acceleration in annual house price growth to 14.3 percent, the strongest pace of increase since November 2004.
“Prices rose by 1.1 percent month-on-month, after taking account of seasonal effects, the eighth consecutive monthly increase. The price of a typical UK home climbed to a new record high of £265,312, with prices increasing by over £33,000 in the past year. Prices are now 21 percent higher than before the pandemic struck in early 2020.”
Foreign Investors join in the rush to buy properties before rises take effect
Korea’s major institutional investors- which includes the National Pension Service (NPS), are increasing their efforts to purchase commercial property abroad, particularly in the London area.
The move has been seen as their effort to diversify their investment portfolios amid low interest rates and market volatility.
According to a recent report by U.K. property consultancy Savills, Korea’s institutional investors have invested at least 1.95 billion pounds (2.82 trillion won) in London’s property market this year and are expected to invest another 1.45 trillion won by the end of the year.
Goldman Sachs’ new head office building near Holborn in London was sold to NPS for 1.68 trillion won, which is the second-highest sum ever paid for a building in the U.K.
The world’s third-largest public pension service bought the property leasehold and leased it back to Goldman Sachs on a 25-year basis. In a bid to better manage its property asset, the NPS also recruited experts in the field in April.
Mirae Asset Global Investments bought the 20 Old Bailey building in London’s commercial district for 494 billion won and the Cannon Bridge House for 359 billion won.
“Mirae Asset bought the building in May as part of the firm’s global investment portfolio,” Mirae Asset Global Investments PR manager Lim Jong-wook said.
Read more: Why property investors should buy now