UK Residential Property Prices Up For Seventh Month In A Row
Residential property prices in the UK have continued to increase for a seventh straight month in August, according to the latest house price index released by mortgage lender Halifax.
The growth in property prices suggest that the government initiative designed to kick start the property market is indeed working, to support the demand from willing first-time and next time residential property buyers, although there are fears that the UK could see another property bubble emerging, because property prices are rising so quickly.
Halifax said that residential property prices increased by 0.4% from July 2013 and were 5.4% higher than 2012, providing the UK residential property market with the biggest annual price increase since June 2010.
In July, residential property prices increased 0.9% from June 2013, and were up 4.6% from July 2012.
The average price of a typical residential property in the UK now averages around £170,231 (GBP) – the highest observed average property price since September 2008.
The Chancellor of the Exchequer, George Osborne, tried to cool signs of recovery exuberance when he spoke before attending the G20 summit in St Petersburg, he re-iterated that the world economy continues to be very volatile and a fresh international crisis could easily arise to shatter confidence in the UK.
Mr Osborne said, “We are still in the early stages of recovery. We still have great economic challenges. I arrive at this summit as a finance minister with pretty much the highest budget deficit around the table, even though it has come down by a third”.
The Chancellors comments also follow the encouraging forecast given by the Organisation for Economic Co-operation and Development (OECD) last week showing that the UK was now ranked alongside Canada, and just ahead of the USA and Japan in terms of growth potential for the second half of 2013.
Recent data has fuelled hopes that the third quarter growth in the UK can beat expansion of 0.7% in the April to June period, with an increasing number of analysts suggesting that growth in the third quarter could be above 1%, with many hoping for around 1.3%, which should be even more good news for the country overall but really good news for investors and developers in the UK residential property market as prices will continue rising, for the foreseeable future.
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