UK Housing Market Continues Impressive Growth
Growth within the UK housing market is still driven by London and the Southeast. House prices have not slowed down their increase since the new year started in both areas as London remains the clear leader within the country at a growth rate of more than 13%. This surpasses the high in 2008. Overall, house prices have increased at a rate of 7%, coming to rest at more than £250,000, according to the Office for National Statistics.
Consumer confidence and government schemes continue to get the nod for what fuels the increase in house prices.
Peter Rollings with London estate agency Marsh & Parsons, commented on the high demand and subsequent increase in house prices, saying: "Unwavering demand from UK and overseas buyers is a key ingredient behind this rate of growth, and prime London property continues to be a mecca for property investment."
Continued increase in house prices is expected by some through the end of the year. The average UK house price is expected to go up by an estimated £14,000.
William Zimmern, a senior economics consultant with PwC commented on the near future of UK housing prices, saying: "Our research indicates there seems to be little evidence to suggest a house price bubble at the UK level.”
Zimmern added: “However, the London picture is more mixed. While credit growth seems relatively cautious, concern will grow if price to earnings ratios and mortgage repayments as a portion of income continue to grow and diverge from the rest of the UK."