UK House Prices On the Rise – Will it last?

At the moment, the average house price in the UK is one hundred ninety three thousand one hundred and thirty pounds. To those who don’t follow stats and figures – this is an increase of two percent from December to January. This is the strongest monthly hike in house prices in Great Britain in the last eight months.

House PricesHouse prices in the UK are slowly on the increase because first time homebuyers and prospective movers are taking advantage of favourable mortgage plans and deals, which naturally boots demand, and when demand is high (and supply low) so is the asking price. The UK property market is experiencing a modest boost due to a number of basic reasons – first, the high approval rate of mortgage plans for the latter portion of twenty fourteen. Second, there is a notable decline in mortgage rates offered by most banks. Next there are the planned stamp duty reforms, and an actual increase in individual earnings over the last twelve to thirty six months.

The small but sharp increase in house prices in the UK shouldn’t be underestimated as the same thing happened in two thousand seven and two thousand nine, and the result to follow wasn’t the best. Experts say that if the British economy continues to expand though, there shouldn’t be any issues for house prices and house buyers. Lower fuel prices and the actual increase of individual or household earnings are also positive factors which should keep home demand high. Financial advisors and economy observers say that the currently house prices in the UK are returning to their normal and expected trend – stable and relatively ahead of inflation. These factors should keep the market stable and calm for some time – a much needed calm down mind you.

One factor that shouldn’t be ignored is the upcoming UK elections. The change of government has definitely got some people thinking, even bracing for certain changes either positive or negative. It is expected for house purchases to drop slightly in the final months leading to the election. Experts say this is likely to steady house prices for the time being, though things are expected to change as there is a surge expected in the weeks following the May election.

Investors and homebuyers shouldn’t be discouraged or over confident and careless when buying as the world economy is not a much more connected field where changes abroad or regional fluctuations in certain segments of the economy can change the situation relatively quicklUK-housingy. The better option is to consider all scenarios carefully (especially when looking to invest quite a bit in real estate) and of course to consult with those who know. A good example of how changes on an international level can have domestic echoes is the steady and continuous drop in oil prices thus the decline of fuel prices on a national level. The drop in mortgage rates and the increasingly favourable mortgage plans are also a factor to consider carefully, especially when it comes to first homebuyers.