In the month of November, 2009 there was increase in the prices of residential prices in UK. It is expected that they shall now remain stabilized in the coming New Year. The rise was to the tune of 1.4 % in comparison to the previous month. Now the average cost of a house property stands at around £168,000.
The increase in the residential properties prices has been continuing for the last 5 months in continuation. April, 2009 witnessed highest rise of 17.7 % and there is cumulative increase of 4.2 % during the last 9 months.
A comparison of the trend of September to November 2009 period over the last year reveals an increase of 3.7 %, which is biggest rise.
Factors Causing Increase:
The economists are of the view there has been sudden increase in the demand foe residential property because of better affordability circumstances in respect of person owning properties and first time buyers felt they can arrange for the down payment considerations.
Having reached a peak it is anticipated the rise in residential properties shall remain contained at the present level or only nominal increase of not much significance, which shall depend on the behavior of UK economy and the number of properties available following the demand and supply principle.
Based on the information on 1st December 2009 the average cost of UK resident property was around £163,000.00 this being the average figure the actual price have been much more.
- There are some sources putting their prediction that prices in 2010, shall fall in the background of weak economy, over valuation of the residential properties by artificial hike and presence of more rigid mortgage lending terms.
- It is understandable, when the shortage of residential properties factor ceases to operate, the prices of residential properties is bound to fall.
- The financial analysts have optimistic view because of presence of buoyancy in the market even in spite of the fact there are factors de-acceleration the price rise.
- The November 2009 increase of 1.4 % preceded by 1.1 % and 1.5 % increases during previous two months shows the steepness of the trends.
- If a comparison is made on year to year basis the prices of residential properties are higher over the last year period but still they are 16 % below the highest increase ever recorded.
The national index at present stands at 12.5 below the peak level record it discounts the possibility of fall of residential properties prices.