Properties in the UK has steadily risen over the past 8 months according to Britain’s mortgage lenders.
September’s Halifax property price survey showed a 4% rise in the 3 months to September. This compared with the same period in 2016 up from a 2.6% yearly rise in August and the highest figure since February of this year. As of last month, average price for one bed flats reached £310,003.
According to Russell Galley, managing director of Halifax Community Bank, property prices in the UK have continuously been backed by extreme shortage of homes for sale in addition to steady growth in employment in London and surrounding zones. Buyer demand has also been supported by the lowered value of Sterling, creating a stronger appeal for foreign investors from China, Russia, and the Middle East.
Another report from Rightmove indicated that the number of transactions over the last two quarters are higher when compared to the same period in 2016 across all regions. Sales are up 4.8% from last February. Given these figures, buyers both new and current investors increasing their portfolio are present.
Russel Quirk, CEO of eMoove also claims that signs of a bounce back in property prices in London and Zones 2 and 3 have been more evident. The busier season has begun and they see positive signs of demand especially with more sellers pricing properties at bargain cost to close more sales.
The last three years have shown that China has been leading the demand for London property. Most notably, buyers from China and Hong Kong have been enjoying lowered property prices because of their thriving economy and the value of the Sterling.
Because of the Brexit, growth in the UK property market has expectedly slowed due to uncertainty but annual rise in house values will remain consistent until 2020.
Finally, government initiatives to continue production of new homes on top of massive regeneration projects will fuel the property industry over the next five years regardless of Brexit’s effects.
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