How is it now with the UK housing market? While Brexit is in the talks, the property value is in the lows.
The average asking price for a house in the UK was down 0.4% on month in June, property tracking website Rightmove said on Monday – is it now at 316,109 pounds.
That follows the 1.2% increase in May.
It also shows the first month of decline this year.
On a yearly basis, house prices climbed 1.8% after advancing 3.0% in the previous month.
In Comparison with Household Earnings
The rise in house prices is important, but what really matters is its comparison with wages. According to a report by the Trades Union Congress, real wages in the UK have fallen 10.4% in the years following the financial crisis, a decline matched in the advanced Western economies only by Greece.
This has made a conflict between real wages and house prices, which between 1989 and 1995 was shrinking. Since then, the trend has reversed. By early 2015, the average price of a house was five times the average annual wage. This is an increase to some degree from 1997, where a house cost little more than twice the average salary.
In 1991, more 25-to-34-year-olds owned a house than not.
While older people are more likely to own a home outright than they were 25 years ago, now, younger people have to wait much longer than their elders did to buy their first house.
More Renting Than Owning
More than a fifth of people aged between 36 and 40 lived in private rented accommodation in 2014, compared with 12.6% in 2008, according to the ONS.
But even with this reports, it doesn’t predict the future for the future homeowners.
The overall share of people who own their homes outright has increased from 23.7% in 1986 to 31.2% in 2014. This can in part be made clear by comparative fall in rates of council home tenancy. While in 1986, 27% of people in the UK lived in a council home, that figure had tumbled to 9% by 2014.