New Data Shows Residential Property Prices
Are Still Climbing
UK property prices are continuing to increase across all UK regions, according to the latest data published by the mortgage lender, Halifax.
The latest data gathered in a survey by the Halifax for February 2014, shows that residential property prices increased by 2.4% during the month, making average property prices 7.9% higher than they were in February 2013.
The growth in UK residential property prices over the last 12 months is the fastest annual pace of increase since October 2007 and means an average residential property in the UK now costs around £179,872 (GBP).
Residential house prices are increasing because of improving economic conditions in the UK and increased demand from frustrated buyers, encouraged by the Government’s Help-To-Buy scheme offering first-time and next-step buyers cheaper mortgages.
A recent poll of 27 economists and analysts by news agency, Reuters suggested that residential property prices could increase by another 7% this year, led by activity in the London property market.Stephen Noakes, spokesman for the Halifax said: “Several factors appear to have boosted demand, such as the improved economic outlook, unemployment falling faster than expected, improvements in consumer confidence and low interest rates. Any future capital growth would be constrained by continuing pressures on household finances, as earnings fail to keep pace with consumer price inflation. We are also seeing signs of a revival in house building, which should help bring supply and demand into better balance and curb upward pressure on prices over the medium and longer terms,”
The Halifax survey follows on from the Nationwide building society survey last week which showed that UK property values increased by 9.4% year-on-year in February according to its index.
Nationwide state that growing demand pushed up the average price of a typical residential property by £15,000 (GBP) during 2013 to reach a new average high of £177,846 (GBP), within £2,000 of the average value calculated by the Halifax.
Nationwide’s Chief Economist, Robert Gardner said, “Property price growth is being supported by the fact that the supply of housing remains constrained, with housing completions still well below their pre-crisis levels, which was already insufficient to keep up with the pace of household formation. For example, in England, around 109,500 new homes were built in 2013. This is 38% below the level recorded in 2007 and around half the projected number of households that are expected to form each year in the years ahead.”
With UK residential property prices still rising and demand for property still strong, there has never been a better time to buy property in the UK and property investors are starting to push the boundaries again, developing new and innovative ways to profit from property.
The UK rental market has boomed since the property crash as many people still think that they can’t afford to purchase, because they are struggling to save the required deposit.
If you want to discover the latest strategies and techniques being used by property investors, we recommend attending at least one property networking event in your local area, and there are plenty of events to choose from.
Full UK property networking events listings can be found here
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