11 Mar Surrey house prices double national average after latest rise
Property values in Surrey are close to doubling the national average after the latest figures showed that housing price have increased by more than 5% over the past year. Over the last month, the average cost of a house in Surrey went up 0.4%, putting the county average at £320,102, significantly higher than the England and Wales average of £168,356.
The rise witnessed in Surrey over the last year is 5.3%, higher than the national annual rise of 4.2%, but lower than the south east figure of 6.4% and the London number of 10.9%. The buoyancy of London market is considered by many as being responsible for the trend.
In the South East, the average cost of a house is lower than in Surrey, at £223,128, but heading northbound up the A3 into London, and buyers could face an average cost of £409,881.
The figures are good news for existing homeowners but made the prospect of getting a foothold on the property ladder even more remote for people on average incomes.
Warren Finney, external affairs manager for the National Housing Federation, said: “The housing shortage in the UK is reaching critical levels as house building fails to keep pace with population growth and wages lag behind housing costs. The shortage is making housing increasingly unaffordable.
“As more people are priced out of home ownership they look to rent, which in turn pushes rents up, creating a much wider crisis.
“Those who can’t afford to buy or rent from a private landlord turn to social housing, increasing the pressure on already stretched waiting lists.
“There isn’t enough supply to meet the demand, increasing the risk of homelessness. Surrey is one of the most expensive parts of the south east, which makes this crisis particularly worrying for people in the area on low incomes.
“The only long-term solution is to build more homes at the right prices in the right places.”
George Evans, negotiator at Savills estate agents in Guildford, said the rise roughly equated to what they had predicted in the company’s own research carried out a year ago.
“I think a lot of it is down to London, which is performing so well still,” Mr Evans said.
“They are waiting for prices to still level off out there and prices are still rising. London buyers are coming here and causing a stir. There has never been a bigger gap between prices in town and country. It doesn’t make us look cheap, it does make us look good value.”
“People move down traditionally for schools, whether it is Royal Grammar School, Charterhouse, or Cranleigh.”
“In the crisis people were not given the money,” he said. “Now lenders are more willing to lend.”