What’s happening to property prices regionally in December 2013?
Regional Averages – England & Wales Summary (see chart below)
Kate’s key question answered: Are London prices really rising unsustainably as an asset?
London prices continue to rise, BUT, when you take into account inflation @3%, London prices have not, on average, kept up with inflation, so cash investors IN REAL TERMS are still losing money!
Are we really back to ‘bubble’ growth?
The blue column in the chart below shows how much property prices have grown annually since 2000. This increases ranges from 7-9% in most regions while London increases by 11%. During the ‘bubble’ days property prices grew by 25 to 30% year on year. It is a false claim to call current market growth a ‘bubble’ as they are below normal.
Acadadata’s Scottish index suggests average prices are rising and house sales levels are continuing to increase. Gordan Fowlis, Regional Managing Director of Your Move, part of LSL, comments: “The recovery of the Scottish housing market is bouncing ahead, with price rises moving past those seen in every other region in Great Britain aside from London and the South East. Average prices are now £5,131 higher than the same time last year, propelled forward by a significant number of sales. In fact, December saw the greatest number of homes change hands in a single month since July 2008, and 27% more sales than a year ago.”
Property prices in Northern Ireland continue to struggle being down 47% versus the 2007/08 high. Whilst this remains perhaps not such good news for sellers that bought their properties around five years ago, this could be the time for potential purchasers to revisit their options and look at getting on the property ladder versus renting.
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