Published UK Property Data For 2014 Suggests
A Record Start To The Year
Confirmation that the UK’s residential property market has returned to health is the first data from Rightmove covering 2014 which suggests that the year ahead looks good for property!
The Rightmove House Price Index (HPI) of 2014 shows that property asking prices increased by 1% in January.
Property prices are traditionally subdued in the first month of the year, prices increased just 0.2% in January 2013 and have usually fallen by an average of 0.2% in the month of January over the last decade.
The number of properties coming to market and activity is also up as both estate agents and property vendors look to cash in on the increased confidence in the UK property market.
Year on year property asking prices are up 6.3%, the highest annual rate of increase since November 2007, before the onset of the UK’s credit crunch. When the positives are added together, it all points to a very strong start in both the price of property coming to market and the number of people looking at what’s on the market.
Property price expectations, from both vendors and estate agents, are usually used as indicators of property market optimism, and actual property prices should keep climbing upwards in the next few months.
Rightmove point out that the sums have to stack up for most property owners before they will consider selling.
Many hope to achieve a higher sales price for their property in order to fund a move to a new property, while others will have a figure in their heads that they’re not prepared to go below.
The second phase of the Government’s Help-To-Buy scheme, launched three months earlier than anticipated, is proving popular with struggling property buyers and more mortgage lenders are set to join up, creating even more choices for prospective property buyers.
The current stock of properties offered for sale is at a 7 year low, at a time when there is more mortgage choice, providing the market with some much needed impetus, driving property prices higher due to the struggle to meet demand.
- The Council of Mortgage Lenders (CML) have stated that they expect mortgage growth to continue in 2014
- A report from the Royal Institution of Chartered Surveyors (RICS) showed that residential property sales in the UK have hit their highest point in almost six years.
- Figures from the Office of National Statistics show that price growth is across the UK, with property prices increasing by 5.6% in England, by 5.4% in Wales, by 2.5% in Scotland and by 3.3% in Northern Ireland when viewed year on year.
While many property owners have been unwilling to come to market during the economic downturn, there are very early signs of greater supply of existing homes being a feature of 2014.
The Rightmove data indicates an increase in the number of properties coming to market compared to the same period a year ago, up by 6%. However, the number of new properties coming to market in January 2014 is still 31% down on the same month in 2008.
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