North-East avoiding housing bubble risk
The North-East is continuing to avoid the housing bubble that is hitting the southern regions of the UK.
According to theguardian.com, new figures from the Office for National Statistics show that house prices in the UK are more than nine per cent higher than they were a year ago. London properties saw the most dramatic prices increases, as values rose by 17.7 per cent over the same period.
This means the average home in London now costs £458,000 - an unreachable price for many, especially first-time buyers. The North-East on the other hand continues to be an affordable place to live, as prices only rose 2.9 per cent over the course of a year. A typical buyer can expect to pay just £146,000 for their own home in the North-East, reports eveningtelegraph.co.uk.
Overall, first-time buyers are paying 10.5 per cent more on average than they were a year ago. Those just heading onto the property market can expect to pay around £192,000 for their first home.
Kris Hopkins, housing minister, says the government will not make the same mistakes as the previous one, which oversaw a housing boom, followed by a bust.
"We have a series of initiatives to boost housing supply, including the provision of affordable housing and to support a healthy private rented sector," he explains. "Our long-term economic plan and efforts to cut the record deficit we inherited mean interest rates remain at a record low making home ownership more affordable."