In Berkshire, houses are worth as much as £37,000 more now when compared to their value prior to the pandemic. While this is good news for current homeowners, this may not be the best news for those first-time home buyers trying to realize their dream of home ownership.
As first-time home buyers try to get out there, the increase in value for homes makes it even more difficult for this group to buy their first home. The pandemic saw a fastest pace of house prices since back in August 2007, particularly in areas like Wokingham. The houses in this area significantly increased in recent years. Just for an example, back in March 2020, the average price for homes in the area was £408,822. Just a year later, it increased by about 9% to about £445,488.
Wokingham wasn’t the only area in Berkshire that saw a significant increase. Reading also had an increase of about 6.7%, going from an average price of £286,973 to about £306,181. Detached homes run for much higher than other options, with a cost of upwards to £666k, while a flat is only £226k. The increase of homes in Reading far exceeds the growth seen in the other parts of the UK.
Something that might surprise you is that established properties are priced higher than a property that is newly built. A newly built property might only cost around £399k, whereas an established property could cost an average of £450k. The pandemic caused people to reassess the preferences that they have for housing, which has impacted the prices as well. Prices also increased due to the supply and demand problem thrust upon the housing marketing, meaning sellers were able to charge more for their homes.
The prices of the houses do not seem to be going down any time soon. Other areas of Berkshire also had a significant increase. For instance, in West Berkshire there was an increase of 6.7% to have an average house price value of £364,933. Bracknell Forest had an increase of 6%, up to £350,644. The entire UK had an increase of 10.2% on average for home prices as of March 2021, though London has seen the lowest amount of growth in the area.
The Reading and Berkshire housing markest are still going strong. The first lockdown back in March 2020 may have stalled the housing market some, but the pandemic is also what’s responsible for the increase of house prices today.
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