Property investment heads north and west says Home.co.uk
Home.co.uk Asking Price Index for England and Wales March 2017 released today headlines ‘Demand heads north as London slumps’.
Year-on-year price appreciation for England and Wales has slipped to just 2.6%, month on month shows at +0.6%.
The summary section leads with – Stagflation in the UK property market looks highly likely this year.
Doug Shephard, Director at Home.co.uk says, “Hope springs eternal but a period of rapid, near double-digit growth in UK home prices is now a long way behind us.
“This year we see underperforming regions like London and the South East weighing heavily on the national figures, keeping growth merely at the pace of inflation or perhaps less, given the weakness of the pound post-Brexit. This situation may persist well into 2018 as oversupply in both the rental and sales sectors drags down property values.
“At the same time we observe property investment head north and west in search of rising rents and underlying asset values that are less prone to post-boom correction. This additional demand is welcome stimulus for these formerly lacklustre regions which have hitherto not made a meaningful recovery post-crisis. This investment- driven boost means marketing times have fallen considerably over the last year and prices are now firmly on the rise. The North West, North East, Yorkshire and Wales have all seen their average prices rise less than 10% over the last five years. With the added tailwind of low interest rates, 2017 and 2018 look set to be years of sustainable growth for these previously underperforming regions”.
Read the Home.co.uk Asking Price Index for England and Wales March 2017 in full click here.
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