Property prices are set to grow by up to eight per cent in the UK in 2014 according to numerous commentators, but it will be the south-east of England where the best increases will be seen, a new study that has been published by Hometrack has shown. It said that the UK will capitalise on strong performances in most regions in 2013.
Last year saw property prices hit levels 4.4 per cent higher than in 2012, reversing the trend of falls in price that were witnessed in the years prior. In 2012, property prices fell by 0.3 per cent year-on-year. However, 11 months of continual growth in 2013 helped restore the market to a period of health.
Demand from aspirant buyers and the fact that the supply of property remains low across the country means that there will be further growth in 2014, Hometrack said. Previously, both Rightmove and Halifax have estimated that this increase in prices will amount to approximately eight per cent this year.
"Overall we expect the momentum in house price growth to spill over into 2014 supported by a continued lack of supply and rising demand. The strongest market conditions and impetus for price inflation is set to remain focused on southern England in 2014. A broader based recovery in the housing market is dependent upon growth in the real economy, jobs and household incomes," said Richard Donnell, director of research at Hometrack. Last year, demand rose by 25 per cent among buyers, and this is something that Mr Donnell expects to see continue this year thanks to governmental support for mortgage lending.
However, in terms of the levels of growth expected across the country this year, it will differ greatly from region to region. Home.co.uk predicts that London will remain strong for the majority of the year, but it will be the south-east and the home counties where the greatest levels of growth are expected to be seen. On the other hand, Yorkshire and the Humber, the north-west, Wales and Scotland are all expected to see rises that are below the level of inflation.
- Friday 10 January 2014