House prices increased by 2.7% – more than the average for West Midlands – in Rugby in April, new figures show.
The rise contributes to the longer-term trend, which has seen property prices in the area grow by 12.3% over the last year.
An imbalance between supply and demand for properties has remained the primary reason behind climbing house prices across the UK throughout the pandemic.
The need for larger deposits and constraints on accessing mortgages have pushed homeownership further out of reach for many first-time buyers – despite Government figures showing 50% of renters would be able to afford the monthly payments.
In a recent major speech in Blackpool, Prime Minister Boris Johnson announced a “comprehensive review” of the mortgage market would take place in a bid to help more people onto the property ladder.
The average Rugby house price in April was £294,095, Land Registry figures show – a 2.7% increase on March.
Over the month, the picture was different to that across West Midlands, where prices increased 0.5%, and Rugby was above the 1.1% rise for the UK as a whole.
Over the last year, the average sale price of property in Rugby rose by £32,000 – putting the area 12th among West Midlands’s 30 local authorities with price data for annual growth.
The highest annual growth in the region was in Herefordshire, where property prices increased on average by 18.3%, to £304,000. At the other end of the scale, properties in Staffordshire Moorlands gained just 5.5% in value, giving an average price of £217,000.
First steps on the property ladder
First-time buyers in Rugby spent an average of £234,000 on their property – £25,000 more than a year ago, and £63,000 more than in April 2017.
By comparison, former owner-occupiers paid £347,000 on average in April – 48.2% more than first-time buyers.
Owners of detached houses saw the biggest rise in property prices in Rugby in April – they increased 3%, to £492,152 on average. Over the last year, prices rose by 15.2%.
Among other types of property:
Semi-detached: up 2.6% monthly; up 12.2% annually; £287,210 averageTerraced: up 2.6% monthly; up 9.9% annually; £216,940 averageFlats: up 2.3% monthly; up 7.3% annually; £142,407 average
How do property prices in Rugby compare?
Buyers paid 21.5% more than the average price in West Midlands (£242,000) in April for a property in Rugby. Across West Midlands, property prices are high compared to those across the UK, where the average cost £281,000.
The most expensive properties in West Midlands were in Stratford-on-Avon – £386,000 on average, and 1.3 times as much as more than in Rugby. Stratford-on-Avon properties cost 2.8 times as much as homes in Stoke (£136,000 average), at the other end of the scale.
The highest property prices across the UK were in Kensington and Chelsea.
Average property price in April
Rugby: £294,095West Midlands:£242,145UK: £281,161
Annual growth to April
Rugby: +12.3%West Midlands: +11.8%UK: +12.4%
Highest and lowest annual growth in West Midlands
Herefordshire: +18.3%Staffordshire Moorlands: +5.5%