New Nationwide data showed that demand for property has pushed average house prices up 10.9 per cent over the past year, the fastest pace for almost seven years.
Prices rose on average by 1.8 per cent in May, after a 2.3 per cent rise in April, according to the figures. As a result, the average price of a house in Britain has hit a high of £242,832, up nearly £24,000 over the past 12 months.
The report outlines how the price rises are being driven by a “race for space” as buyers search for bigger homes and gardens. Almost a third (30 per cent) of buyers are planning to move so they can access a garden or outdoor space more easily, while a similar figure want to buy a larger property.
More than 20 per cent of buyers who have moved or want to move say they want to “get away from the hustle and bustle of urban life”, according to Nationwide.
While there is stronger preference for rural living among middle-aged homebuyers, many younger buyers are also seeing the attractions of rural locations.
While a quarter of 18 to 24-year-olds still want homes in larger cities and towns, the Nationwide survey shows an equal number are heading to villages.
The Guardian - ‘Race for space’ fuels 10.9 % surge in UK house prices
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