The rate of property price rises in 2014 could be double that seen in 2013, according to new reports, as the market continues to recover from the negative conditions seen in 2007 and 2008. Returns to some semblance of health were witnessed in 2013, with price rises of around five per cent recorded by the majority of property firms, but these could be even greater in the year ahead, according to Assetz.
Its latest set of data has predicted that price rises could top ten per cent throughout this year, with the near constant demand from new buyers and investors, along with the chronic supply issue, both coming together to see prices swell once again. The company also predicts growth at regional levels rather than just in the capital.
"Property prices are set to grow by ten per cent in 2014. In 2013 the headlines have centred on price growth in London but next year we will see the rest of the country fighting back," said Assetz chief executive Stuart Law. "Well established locations in city centres and suburbs accounting for around 85 per cent of residential property, where employment is high, will see strong price growth. However, in the 15 per cent of areas where employment is low and economic conditions are poor, prices will continue to be suppressed."
Mr Law blames much of the price rises on the fact there is still a lack of supply in the country, but could this soon be a thing of the past? Another report from the National House Building Council (NHBC) said that building is at its strongest level in years as of the end of 2013.
How does supply influence house prices? See our report here charting 40 years of government house price data revealing a very different picture indeed...
NHBC data for the period of September to November 2013 shows that there had been a significant rise in housing starts. Some 34,356 new properties were registered during this period, compared to 26,420 a year before. This marks a 30 per cent increase in the space of 12 months, suggesting a recovery could be on the way.
- Thursday 09 January 2014