House Prices Predicted to Break Records in Latest Boom
20th January 2014
Predicted record house prices
House prices are on the move again, this time in an upward trend that has homeowners surging to market their properties, according to online estate agents, Rightmove. The UK’s largest property website also voiced concerns that this will fuel the fire of house pricing to record levels.
According to figures, the comparison made in October 2013, showed that UK house prices rose by 5.5% on the previous year. Interestingly, London estate agencies are steering toward first-time buyers; with no chain, they are able to move quickly, which seems to be the prerequisite at the moment. It is common practice for buyers who have not yet marketed or indeed sold their current properties to be ‘bumped’ in favour of the first-timer or those in a position to get things moving.
The recent reports focus upon the capital and the South-East, but evidence is showing of the house-pricing trend moving to other parts of the country. Current trending shows rises of 12% in London, equating to roughly £70,000 on an average property, with the West Midlands and the East of England bringing up the rear on almost 5% increases.
The general consensus across the country is one of concern, as 63% of the populous want house prices to stabilise, 20% want them to fall and only 14% show a positive response to the climbing prices. The property prices ‘boom’ in the housing market is contributing to the growth in the house building market, which is not altogether a bad thing - the economic downturn hitting this sector the hardest - and will drive the industry forward.
As this upward trend is set to continue, buyers are cushioned by the promise of interest rates remaining stable for at least another 12 months and thereafter rising only cautiously. First-time buyers should also consider, however, that the price rise of an average London property is 10% higher than the average city workers salary, which is not predicted to rise in equal proportion any time soon.