Shropshire Star

House prices are booming in Shropshire

Growth in house prices in Shropshire accelerated in November, leaving the average property value at £200,748.

Published

Official Land Registry figures show that prices in the Shropshire Council area rose by 4.33 per cent in November, compared with a year before, building on 3.2 per cent annual growth recorded the previous month.

Growth in Telford & Wrekin continues to outpace that of its neighbouring authority, meanwhile.

A 6.6 per cent annual increase in the average property price in November means househunters in the borough are now facing a typical price tag of £154,062 if they wish to own a home.

It means that the county's house prices are now back above the figures that were achieved at the height of the property boom before the market crash late in the last decade.

The average UK property value has increased by 6.7 per cent over the last year to reach £218,000, the monthly report from the Office for National Statistics shows.

While the property market continues to present significant challenges for buyers, it is expected to cool off this year.

Andrew McPhillips, chief economist at Yorkshire Building Society, said: "Although house price growth remained strong in 2016, we expect demand for both residential and buy-to-let properties to dampen in 2017. We are therefore likely to see little movement in house prices over the coming year.

"On the residential side, people are likely to have less spending power due to a combination of increasing inflation and stagnant wages which will make it even more difficult for people to save for a deposit.

"In terms of buy-to-let, tougher affordability requirements and a reduction in tax relief for mortgage interest payments could make letting properties less attractive to investors."

Taken on a month-by-month basis, prices in Telford & Wrekin grew by 0.7 per cent and in Shropshire the average increased by 0.75 per cent.

Powys too has experienced rapid growth in its property prices, with a year-on-year increase of 6.5 per cent in the year to November leaving the typical home worth £176,283.

Across Britain, a first-time buyer faces paying 6.6 per cent more for a property than a year ago, with the average starter home now costing £183,482.

Sorry, we are not accepting comments on this article.