House prices in Rugby on the rise
House prices in Rugby increased by 1.7% in September, contributing to a 6.4% rise over the last 12 months.
The latest data from the Office of National Statistics shows that the average property in the area sold for £241,214 – slightly above the UK average of £232,554.
Across the West Midlands, property prices have risen by 6.1% in the last year, to £199,763. The region outperformed the UK as whole, which saw the average property value increase by 3.5%.
The data comes from the House Price Index, which the ONS compiles using house sale information from the Land Registry, and the equivalent bodies in Scotland and Northern Ireland.
The average homeowner in Rugby will have seen their property jump in value by around £71,000 in the last five years.
The figures also showed that buyers who made their first step onto the property ladder in Rugby in September spent an average of £193,280 – around £56,000 more than it would have cost them five years ago.
Frances Clacy, research analyst at estate agents Savills, said a slowdown in growth compared to the previous year was caused by more stringent lending criteria.
She said: “The higher value markets of London, the South East and the East of England, where affordability is most stretched, have been particularly impacted. For the capital, house prices are now lower than they were a year ago.
“Economic and political uncertainty, particularly surrounding the outcome of Brexit, also means buyers have become more cautious.
“On the flipside, the West and East Midlands have been the strongest performing regions over the past year. Despite these strong levels of house price growth more recently, average values still remain below the £200k mark for both regions.
“We are forecasting that the Midlands, North, Scotland and Wales will all outperform the UK average over the next five years as these regions have fewer constraints on mortgage affordability and have more capacity for further house price growth.”
Between August last year and July this year, the most recent 12 months for which sales volume data is available, 1,758 homes were sold in Rugby, 9% fewer than in the previous year.
The highest house prices in the country in September were found in London’s Kensington and Chelsea, where properties sold for an average of £1.5 million – 19 times the cost of a home in Burnley, where the average property cost just £79,400.