UK property prices record all-time highs after 7 consecutive monthly rises

In truth it's been a two-speed story all along. 

In cities such as London and Cambridge in the populous south-east property price gains have barely skipped a beat over the last 5 years and analysts expect this trend to continue.

It's why I have always advocated prime locations where property demand is highest.

In Britain, those who opted for medium-density dwellings including flats, townhouses and maisonettes in the quality suburbs in and around London have seen their property portfolios outperform.

Those who opted for higher-yielding detached housing in the north of the country where demand has been much lower (in particular because of the migration to the south-east of the country) often remain in negative equity many years on. 

It's a salutary for property investors no matter which country they are in - you need to identify areas where there is little land for release and population booms can create housing shortages. And the south-east of Britain has this coming in spades.

The UK newspaper headlines have quickly reverted from "housing doldrums" to "housing in the south-east is unaffordable" seemingly almost overnight.

Full article here:

"The price of houses in the U.K. hit a record high in July, according to online real estate portal Rightmove, which doubled its forecast for 2013 prices and now expects them to rise by 4 percent, up from a previous estimate of 2 percent.
The average property asking price is now at £253,658 ($383,171), Rightmove said on Monday, up 0.3 percent since June and 4.8 percent higher than at the same time last year. In cash value prices have risen £11,561 in a year.
This marks a seventh consecutive monthly rise in the price of property coming to market, and the second successive national record, it said. Prices in the capital still show the biggest increase with London prices gaining 12 percent since July 2012."
"London will continue to outperform the rest of the country and we also expect the South East, the main beneficiary of the 'over-spill' from the capital, to maintain its strong momentum, both driven by an on-going shortage of supply of property for sale. Asking prices in the capital are currently 29 percent higher than they were five years ago compared with 7 percent in the South East and just 5 percent nationally".

No comments:

Post a Comment