Vendor confidence benefits from a Spring boost according to Home.co.uk

April 13, 2017
what is happening to house prices

Home.co.uk released their latest Asking Price Index April 2017 yesterday 12th April headlined ‘Asking Prices Surge on Spring Optimism’.

In the report it points out that: Seasonal confidence has raised asking prices by +0.9% for the month of April, the largest monthly rise since March 2016. Year-on-year home price appreciation for England and Wales has made a countertrend move up to 3.0%. Overall, price rises are much more subdued this year than last. In April 2016 the annualised rate of increase of home prices was 7.5%.

Vendor confidence is benefitting from a spring boost in many regions and this effect is most apparent in the South East and South West, hpwever the London market remains subdued.

Doug Shephard, Director at Home.co.uk said:  “We are living in a highly unusual economic environment. Due to artificially cheap credit, investors can currently obtain mortgages with a rate of interest lower than the real rate of inflation.

“In more ‘normal’ times we would see interest rates hiked above the rate of inflation but such is the indebtednessof the UK, the economy is too fragile to withstand such a move. As long as this situation persists, we can expect this ‘free money’ to continue to be invested in the property market in search of a decent return.

 

 “However, one should not expect this to be ‘blanket’ investment. The growing number of corporate landlords will focus their investment based on two key factors: immediate returns (rent) and potential returns (capital gains). On balance, the current front runners for the best returns appear to be Yorkshire and the Midlands. We expect significant investment demand to be directed into these regions, further stimulating growth in these housing markets.”

 

Read the Home.co.uk Asking Price Index April 2017 in full click here.

 

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

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