It is increasingly difficult for people across the county to access the property ladder after house prices continue to rise, data shows.
He revealed that annual house price growth remained in double digits for the fifth consecutive month in September despite a “modest slowdown”.
Property values rose 10% annually in September, up from 11% in August, according to Nationwide Building Society.
Prices only rose 0.1% month-on-month, bringing the average UK home price to £ 248,742.
The average house price for the Yorkshire and Humber area is now £ 188,457; an annual increase of 12.3 percent.
Wales and Northern Ireland were the best performing regions of the UK in the third quarter of 2021, while London was the weakest, Nationwide said.
Robert Gardner, Nationwide Chief Economist, said: “Annual house price growth remained in double digits for the fifth consecutive month in September, although there was a slight slowdown to 10% from 11% in August.
“House prices rose 0.1% month-over-month, after accounting for seasonal effects. As a result, house prices remain (around) 13% higher than before the start of the pandemic in early 2020. ”
The stamp duty threshold in England and Northern Ireland will return to normal levels from Friday October 1, after a holiday was temporarily put in place in 2020 and then lowered from July of this year. There had been a flurry of activity in June as buyers rushed to maximize their tax cuts.
Mr. Gardner continued, “Home prices have continued to rise faster than profits over the past few quarters, which means affordability is increasingly strained.
“Raising a deposit remains the main obstacle for most potential first-time buyers. A 20 percent down payment on a typical first-time home is now about 113 percent of gross income, a record.
“Due to historically low interest rates, the cost of servicing a typical mortgage is still well below levels seen with the approach of the financial crisis. However, even on this measure, affordability becomes more difficult.
“For example, if we take a look at typical mortgage payments versus take-home pay across the country, it is noteworthy that in the majority of parts of the UK (10 out of 13) this ratio is now above its average at long term. However, before the pandemic, this was only the case in one region (London).
“Recent pricing models suggest that an element of rebalancing is occurring where most of the regions that have experienced the strongest price growth are those where affordability is still near or below the long-term average.”
Mr Gardner said the outlook remains uncertain.
He added: “Business is expected to ease for a period after the stamp duty holiday expires at the end of September, given the incentive for people to advance their purchases to avoid the additional tax. .
“Additionally, underlying demand is expected to weaken early in the year if unemployment rises as government support wanes, as seems likely.
“But it’s far from certain. The labor market has remained remarkably resilient to this day, and although it is weakening, it is possible that housing preferences will change in the wake of the pandemic – such as wanting more space or relocating – to continue. to support the activity for a while yet. ”
Here are the average home prices in the third quarter of this year and the annual increase, according to Nationwide Building Society:
– Wales, £ 190,700, 15.3%
– Northern Ireland, £ 167,103, 14.3%
– Yorkshire and the Humber, £ 188,457, 12.3%
– Scotland, £ 171,134, 11.6%
– North West, £ 191,326, 11.4%
– North East, £ 147,358, 10.9%
– East Midlands, £ 215,284, 10.5%
– West Midlands, £ 220,558, 9.9%
– South West, £ 286,006, 9.9%
– Exterior South East, £ 320,050, 9.8%
– East Anglia, £ 260,109, 8.9%
– Metropolitan outside, £ 402,317, 6.8%
– London, £ 500,980, 4.2%