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Average Prices in England and Wales Reach £290,000

Posted by Aliza Xandria Arellano on Feb 15, 2016 10:30 AM EST
New Build Houses Remain Unsold Despite Financial Incentives more big
CARDIFF, UNITED KINGDOM - MARCH 18: A estate agent's sign is displayed outside a house for sale on March 18 2008 in Cardiff, Wales. House builders are being forced to make more and more attractive offers to tempt house buyers due the global credit crisis which is deepening still further with the collapse of US bank Bear Stearns. This has meant credit such as mortgages are becoming increasingly harder to obtain. Some UK lenders are only offering mortgages to first time buyers with deposits of 25 percent of the purchase price. (Photo : Matt Cardy/Getty Images)

The average home values in England and Wales have experienced astonishing growth. At the same time, the average prices have reached almost £290,000.

The analysis showed the differing figures between different regions. According to the latest index as reported by PropertyWire, "South East remains the region with the fastest year on year price rise at 7.7 percent, London has now moved to second place, while the typical property in London has increased in value by £34,485 in the last year, which is almost equal to the £35,333 median gross annual earnings in the capital."

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Basing on the same report, a total of 900,650 home sales were recorded in 2015, and a decline of 2.6 percent was noted as well, but sales in the second half of the year were above the same period in 2014.

On the other hand, according to Adrian Gill, Director of Reeds Rains and Your Move estate agents, "We're now passing these milestones in quicker and quicker succession, as prices pick up pace. This hastening is great news for homeowners, but means it's getting harder for those still hoping for home ownership. In the last 12 months, there's been a 5.5 percent upswings in average property prices compared to just a 2.1 percent rise in average earnings."

The PropertyWire article stated, "However, he [Gill] also pointed out that aspiring buyers now have much more support to help get a foothold on the ladder, with the launch of the Help to Buy ISA in December and the new Starter Homes scheme this year."

Furthermore, Gill added, "Regionally, there has been a significant upswing in sales in the North West, rising 8.8 percent in the last quarter of 2015, compared to the same period in 2014. We are now seeing faster growth in sales in lower-priced areas, as buyers seek more property for their money."

It appears that England and Wales may just have to deal with rising home values longer than anticipated if neither region implements certain measures to counter the rising values.

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