Confidence returns to the UK property market? - Emerging Real Estate

For more information call 01924 364754

• Home
• News
• Blog
• Developments
• About
• Contact

 Confidence returns to the UK property market?

In a surprising turn of events, new research has shown that UK house prices are again on the up – with price increases of 1.7% since January of this year, meaning the cost of homes in the UK has risen by an average of £100 a week in almost every part of Britain.

The reports come after property experts at FindaProperty analysed more than a million homes and is good news for investors as it shows there is still money to be made in property investment. It appears that a shortage of homes is helping to drive prices back up again, albeit at a slower pace than before. Landlords are also buying up houses at a fast rate to take advantage of the soaring rental market.

Another positive sign is that homes that are for sale are selling more quickly than they were at the start of the year by an average of nine days. All of this is also welcome news for homeowners, many of whom have been plunged into negative equity by the collapse in house prices since the recession. It is even predicted that house prices could rise by as much as 14% over the next four years. The Centre for Economics and Business Research predicts that the average home will rise in value from £176,000 to £200,000 by 2015.

The average cost of homes in Greater London for example has risen to £427,889, an increase of £33,641 since September 2008. There were rises recorded all over  the UK, including average increases of 1.5% in Yorkshire, 2.6% in the North East and 2.9% in the West Midlands. The only part of the UK not to see rises in their property prices was Wales which has again dropped by 0.4%.

 “The rise in house prices shows confidence in the property market remains steady as a result of homeowners realising the old adage is true; in times of trouble invest in bricks and mortar” said Samantha Baden, an analyst at FindaProperty. She continued to say “Despite economic tough times, property has proven a far more solid investment than might have been thought at the start of the year” and described the findings as “encouraging”.