Property prices rise across London and UK, studies show
Research published Monday (July 25th) by property website Zoopla.co.uk shows property values increasing by an average of 2.6 per cent since January – a jump of £5,478. The largest rise was centred in London, while the north-east region saw properties lose the most value.
Within the capital, further studies from key mortgage lender Lloyds TSB demonstrated the effect the Olympic Village has had on property prices, with values in the closest 14 postal districts rising by 28 per cent since London was awarded the Games.
Overall, average house prices across the UK now stand at £216,260 with London “powering ahead of the pack with average values now at their highest level since January 2009″, said Nicholas Leeming, business development director of Zoopla.co.uk.
“There is still some uncertainty over the future of the economy,” he added.
However, signs suggest that confidence in the market is draining as many customers do not expect the value of their houses to increase over the next six months, according to property data firm Hometrack and a further survey by Zoopla.co.uk of customer attitudes.
Home values have fallen this year as weak demand undermined prices, Hometrack said. While the market is now in “broad equilibrium” and the Bank of England’s key interest rate remains at a record low, prices will remain under pressure, it said. A separate report from Markit Economics showed Briton’s finances weakened in July at the fastest pace since March 2009.
“Almost four years into the downturn, the housing market is showing signs of adapting to a low turnover environment,” Richard Donnell, Hometrack’s director of research, said in the statement. “Despite a general improvement in the balance of supply and demand, headline prices remain on a downward trend and are likely to fall further over the coming months.”
The Hometrack survey showed that sellers are accepting an average 7 percent reduction on asking prices for their properties. The percentage of sales agreed rose 9.6 percent this month after a 10.7 percent jump in June, while the average selling time slipped to 9.4 weeks from 9.7 weeks. In London, the average selling time is 5.7 weeks.
“Both sellers and buyers have become more acccepting of realistic pricing,” Donnell said. “The market has adjusted well to low turnover conditions with the volume of forced sales remaining relatively small.”
According to Rightmove, 41.1 percent of consumers expect home prices to be about the same in a year’s time. That compares with 40.3 percent of consumers in the second quarter and 34 percent a year ago, it said. The report also found that 26.2 percent of people expect higher prices in a year, with 26.9 percent forecasting lower prices.
However, things aren’t so gloomy everywhere. Barton Wyatt in Virginia Water, where the average price of a home is £1m have reported increased sales volumes this year. James Wyatt says that the positive London market is being mirrored in other qulaity locations. “We’ve had a large number of foreign buyers this year, attracted by the great local amenities, International schooling and the weak pound”. Wyatt added that these buyers have large budgets of £5m+ – can’t be bad!
For more information on the property marketin the area, please contact Barton Wyatt Estate Agents Surrey.