UK Property Prices Extend Best Run Since 2007
There was some good news for property investors looking for capital appreciation this week as it was reported that UK property prices have continued to rise, increasing for the 14th consecutive month in March 2014, the longest run of price growth for nearly 7 years.
Residential property values across the UK increased by an average of 0.6% in March, with the South West and East Anglia regions recording the largest property price increases of 0.8%, according to data supplied by Hometrack Ltd.
Yorkshire & Humberside and the North West regions registered the smallest gains, with property values increasing by just 0.2% in March 2014.
Even independent surveyors are forecasting property prices to increase by a further 6% this year and are including this information on property condition reports for prospective purchasers.Nationally, property prices have increased by 5.7% from March 2013 and the annual rate of growth was positive across all UK regions for the first time since September 2007.
The proportion of vendors achieving their full property asking price was 96.2% in March 2014, the highest recorded number since 2004, however in London the proportion was even higher, recorded at 99.3%.
Property prices in central London also saw 0.7% growth, while 50% of Greater London postcode districts also recorded price increases.
Richard Donnell, director of research at Hometrack said “Half of the country registered a price increase in March for a second month in a row. The real driver of higher house prices is record-low mortgage rates and strong demand from first-time buyers and investors who have no property to sell.”
Low borrowing costs and the Government’s Help-To-Buy incentive scheme, have sparked concerns that the UK housing market could be risking another price bubble.
The Bank of England’s (BoE) Financial Policy Committee (FPC) noted the increasing momentum in the UK property market, however, a number of indicators remain below their long-run average levels but they pledged to remain vigilant and take more action if needed.
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