UK House Price Rises Good Only For The Rich?

  • 11 years ago
  • Uncategorized

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 don’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 £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 ‘robust’ 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 £162,621.

But London prices went up 6.9% in the same
period, bringing the average price in the capital to £383,930.

Martin Ellis, housing economist at Halifax,
said: Ã¢â‚¬Å“Sentiment 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

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