House price growth in Britain, especially in some of the country’s most populated areas, continues to rise. A survey by Hometrack, which analysed the nation’s twenty biggest cities, found property price increases are expected to be around 7% during the coming year. This is a rise of 3% on previous predictions made only seven months ago.
Birmingham with a 7.8% annual average price growth, along with Leeds and Manchester, are leading the way, enjoying an increasingly vibrant housing market.
Low mortgage rates and an easing of unemployment figures are also helping to support price growth. Richard Donnell, Hometrack research director said:
“Despite a material slowdown in the rate of house price growth in South Eastern England, the headline rate of city house price inflation is holding up.”
Even areas around London, which have shown the slowest gains, are starting to recover. Property values have almost doubled in Waltham Forest and Newham, Barking & Dagenham have seen their largest increase in prices in two years. These boroughs were hit hardest in the recession and saw drops of 15 % in earlier years, but are now up some 32%.
In general, London’s house prices have started to show signs of recovery, led initially by an interest in prime central London, they have now concentrated on the suburbs.
Andy Mason, mortgage director at Lloyds Bank, is positive about the recovery of house prices in the capital, stating:
“Average house prices in the most expensive areas are starting to flatten, whereas London’s most affordable areas are showing healthy growth,”
He suggests that areas such as Newham are benefiting from the interest from buyers seeking property slightly further out from central London. Another potential benefit will be the Cross-Rail link direct into the city, which will be up and running in the next two years.
On the whole, the immediate future for house prices in Britain looks promising, despite government initiatives to claw back revenue.
With continued interest in British property, even from overseas, and the present situation regarding lack of available property especially for renting, property prices look likely to continue to rise at a steadier rate. It seems likely that most areas, particularly outside of the capital and in expanding cities in the UK, will show increases.
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