As we hit the new year once again we witness a struggle throughout the United Kingdom in terms of the economy, with talks of recessions and tax’s at the front of every news bulletin. This cannot be said in the property market however, with home prices rising once again, although many economists have said that the market is set to remain very tough throughout the new calendar year 2013.
The ONS (Office for National Statistics) have quoted a 5% increase in London and the South East, which suggest that they are bucking the trend from the rest of the country. The same can not be said for the rest of the UK, with Scotland and Wales seeing the largest dip in house prices through 2012.
With the unemployment rate being so high right now, and wage rises also so difficult to come by once again, people are going to find it hard in the current environment to move house. Although the central banks attempt to cut mortgage rates could be one of the only helping factors for people to jump into property once again.
The North of England sees the lowest value of house prices in the UK, seeing a slight dip from 2011, but these prices are expected to rise slightly throughout 2013 with the help of government schemes for first time buyers.
One of the main reasons for this 5% increase being the amount of people coming to study in London and the middle class buying homes to accommodate this we have seen a healthy rise in property valuation all over the South East. With more and more French buyers in the market and also the middle class Chinese it has meant for us Brits its been a hard market to crack, unless you’re one of the lucky ones selling the home.
Quote taken from The Telegraph website on UK house prices:
House prices continued to rise in 2012, official figures showed today, driven largely by demand for property in London and the South-East of England.
Despite a return to recession for the economy last year, UK house prices increased by 2.1pc to £232,000 in the year to November, up from 1.5pc in October.But the figures, published by the Office for National Statistics, showed steeper increases in the capital, where prices were up 5pc to £393,000, and the South-East, which registered a 3pc increase.
The ONS survey also reflected a weaker increase in Wales, up 0.8pc, and declines of 1.1pc in Scotland and 8.5pc in Northern Ireland.It also suggested affordability continuned to worsen for those trying to get on the property ladder. Prices paid by first-time buyers were 2.7pc higher compared to 1.9pc for existing owners who had moved.