Wealthly overseas property investors heading for the UK should take note that the UK is experiencing a leap of faith where house prices are rising at a super fast pace.
In my view too fast and London could well one place in the world where house prices donÃ¢â¬â¢t seem to matter.
Britain houses prices rose at their fastest rate in three years last month. Is this further signs the market is on the mend or one fuelled by wealthy international real estate buyers?
UK house prices rose by 3.9 per cent to an average of ÃÂ£170,825, according to building society Nationwide. Prices saw their strongest annual upswing since August 2010 and rose on a month-on-month basis by a Ã¢â¬ËrobustÃ¢â¬â¢ 0.8 per cent.
This apparent recovery of the UK housing market maybe owed to the number of low deposit mortgage deals now available. The British housing market had become stagnant with banks fearful of lending unless a minimum 20% deposit was found.
Homesgofast.com see a numbers of international buyers seeking property in the UK but these buyers are mainly searching for homes the South of the country. London being the most popular region.
The average price of a property in England and Wales rose by 0.8% in the 12 months to June, reaching ÃÂ£162,621.
But London prices went up 6.9% in the same period, bringing the average price in the capital to ÃÂ£383,930.
Martin Ellis, housing economist at Halifax, said: Ã¢â¬ÅSentiment regarding the outlook for house prices has improved markedly over the past three months, continuing the trend seen since late 2012. This increase in optimism is partly due to house prices being stronger than expected in the first half of the year. We continue to see a clear north-south divide with significantly higher proportions of people expecting prices to rise in the south than elsewhere in the UK.
It does seem London is like no other housing market where demand outstrips supply and demand comes from those with deep pockets. The UK housing market pundits need to take account how much influence one region is having on the UK housing market data? It could be that London central property region will only serve the very rich.
Author : Nick Marr