UK property values increase for seventh month in a row
UK property values have reached a new five year high, according to property portal, Rightmove, who revised their forecast of UK residential property values, and now reckon that residential property prices will increase to double their previous property value forecast for 2013.
As Spotlight reported last week, residential property values have already increased by 0.3% to average £253,658 (GBP), and now Rightmove reckon property values will now climb by up to 4% this year instead of the 2% previously predicted. However, it wasn’t good news for the whole country as residential property prices in London remained unchanged, holding at a record average of £515,379 (GBP).
The economic incentives introduced by the Government and the Bank of England (BoE) to increase overall lending and credit supply has boosted the demand for residential property ownership from first time buyers.
The UK economy is still growing in strength and many economists are hoping that the domestic economy will continue to expand twice as fast as previously projected. Property transactions are gathering pace and the global economy also appears to be recovering, however the UK export market remains pessimistically vulnerable.
Rightmove Director, Miles Shipside said: “A combination of apparent economic stability internationally, or at least, less widely-reported turmoil and some signs of an economic upturn nationally mean more home movers are willing and able to increase their financial commitments. Barring a raft of bad economic news, we expect the positive impact of this on the UK property market to continue. Partial unblocking of pent-up demand and the ability to borrow is increasing as the Funding for Lending Scheme (FLS) starts to really deliver, though it still favours those with better deposits.”
Rightmove say that the UK property market is showing a broader-based recovery and according to its index, average property values in England and Wales have increased by 4.8% since July 2012. In contrast property values in London have increased by 12% in the past year.
The Rightmove data compounds the UK House Price Indices (HPI) published by mainstream mortgage lenders, Halifax and Nationwide, which also published upbeat reports that property values increased again in June 2013.
The Halifax quarterly survey conducted on 13th July 2013 showed that confidence in the UK property market has also increased.
- 52% of respondents predicted residential property values will continue to increase, up 7% from March 2013
- Just 12% of respondents predicted property value decreases
Ther has never been a better time to get into property investment with UK property values predicted to continue to increase, it could provide capital growth for property developers and the longer term prospects for landlords will provide healthy rental returns providing a great yield on investments
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