House prices in the UK continue to soar, with the latest ONS data revealing a significant upward trend in both rental and purchase costs, exacerbating the housing affordability crisis.
House prices across the UK have witnessed a significant increase, with various reports illuminating the growing housing affordability crisis. According to the latest data from the Office for National Statistics (ONS), the average cost of rent has risen by nine percent in the past year, with house prices in January seeing an increase of 0.5%, reaching £282,000. The North West of England recorded the most substantial growth in house prices over the past 12 months, with a one percent increase, while South Hams in Devon saw a remarkable 11% rise in property values.
Winchester and Edinburgh were among the top locations experiencing a surge in house prices, attributed to their desirability, cultural offerings, good schools, and limited housing supply. The situation has also accentuated in rural England, where over half a million people have been forced into renting due to skyrocketing house prices, significantly in areas outside London with an average house price standing at £309,000. This has led to concerns over the weakening of the socio-economic fabric in rural communities, with many locals unable to afford homes due to the influx of wealthy individuals and celebrities.
The County Councils Network (CCN) has highlighted the severity of this trend, showing a 31% increase in private renting in rural areas, surpassing the growth in urban locations. The scarcity of affordable rental options and the rise in homelessness underline the urgent need for action. The CCN calls for a new rural housing plan focused on social housing, a review of policies impacting the lack of affordable rentals, and emphasizes the importance of involving councils in the planning process to address the housing crisis effectively.
The government has pledged funds towards improving housing supply and affordability, aiming to create a fair housing system across all regions. However, with the pressing increase in both house prices and rent, alongside the challenged availability of affordable housing, these measures are awaited to see how they will impact the overall housing landscape in the UK.
