39,809% Property Price Increase!

A home owner in Leeds has discovered an 84-year advert for her home when it was originally sold for £628 with a £33 deposit, according to the Metro. As the property was the developer’s show home, it even came with furniture included.

The property in Cross Gates Leeds is now estimated to be worth £250,000 – that’s a massive property price increase of 39,809%.

The newspaper cutting for the new home advertisement from 1937 is thought to have remained in the 3-bedroom semi-detached property since it was built. The current home owner purchased the property for £60,000 in 1992, where the property price has since quadrupled in value.

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Undersupply of Housing

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There is a huge undersupply of new homes in England. It is estimated that up to 345,000 new homes are needed each and every year to meet demand from new households and to clear the backlog of the existing demand for new housing.

The supply of new homes is around 244,000 per year (2019/20), which is an undersupply of 101,000 new homes every year, adding to the backlog, so the situation is likely to only get worse.

As supply is not meeting demand, his is causing property prices to rocket. Industry experts forecast property prices in the UK to increase by 21.5% in the 5-years to 2025 and up to 28% in the North West and Yorkshire and the Humber. So that 3-bedroom semi-detached house in Leeds could be worth £320,000 by the end of 2025, increasing by over 509x its original value.

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Buy-to-Let Property Investment

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Now really is the time to buy a property for investment before prices increase.

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Source: Metro