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.

You May Also Enjoy

Coastal and sea front property
Estate Agent Talk

The Biggest Factors that Reduce Property Value

If you are looking to sell your home, or if you own a number of properties, then you’ll want to make sure that your sale price matches your valuation. With that said, there are a number of factors that might affect this. Underpinning Subsidence can be scary if you’re a homeowner. There’s no doubt that…
Read More →
Letting Agent Talk

How to Transition from a Fixed-Term Tenancy to a Periodic Tenancy

Transitioning from a fixed-term tenancy to a periodic tenancy is a common occurrence in the UK rental market. It offers flexibility and convenience for both landlords and tenants by continuing the rental agreement on a rolling basis once the fixed term ends. Whether you’re a landlord managing a property or a tenant seeking clarity, Martin…
Read More →
Breaking News

Housing sales end 2024 on a high, but buyers more cautious about how much to pay for homes as mortgage rates drift higher

Buyers and sellers returned to the market over 2024 building a sales pipeline 30 per cent larger than a year ago with 283,000 homes worth £104bn progressing to a sale in 2025. This is the largest end of year total value for four years. House prices have returned to growth with the average house price…
Read More →
Breaking News

£21 million to live on UK’s most expensive street

· Knightsbridge in London now the priciest UK street · The UK’s 10 most expensive streets all in the capital, with an average price tag of £16.5 million · East Road in Weybridge the most expensive address outside of London · Priciest UK properties are 60 times more than a typical home Lloyds has revealed…
Read More →
Breaking News

Breaking Property News 20/12/24

Daily bite-sized proptech and property news in partnership with Proptech-X.   Why estate and letting agents must embrace innovative technology in 2025   As we step into 2025, the UK property market continues to shift, and estate agents face mounting pressure to meet the evolving expectations of buyers and sellers. The days when static images sufficed…
Read More →
Breaking News

Breaking Property News 19/12/24

Daily bite-sized proptech and property news in partnership with Proptech-X.   High street Auctions’ initiative launches to revive Britain’s town centres   This month the UK Government rolls out its highly anticipated ‘High Street Auctions’ scheme, a flagship measure of the Levelling Up and Regeneration Act 2023. This initiative grants local authorities the power to take…
Read More →