Property Prices Set to Rise

A recent survey published by The Royal Institute of Chartered Surveyors (RICS) has shown that the recent increase in house prices shows little sign of abating, with prices set to continue to rise for the foreseeable future.

The persistence of record low interest rates has kept mortgage rates low with the UKs cheapest ever two-year fixed rate mortgage of 1.09% being offered in April, followed in June by reports of mortgage approval rates seeing their biggest monthly rise since 2009. These factors, when coupled with the strengthening jobs market has created exceptionally high demand from buyers. The number of new inquiries has continued to rise for the past five months in succession, with the North West area showing some of the most significant improvements. These findings certainly accord with our own experience here at NSW Properties, where we have witnessed a significant increase in the amount of prospective buyers over the summer period.

However, offset against this high demand is a low supply of new vendor listings which have fell for a seventh consecutive month, pushing average stock levels to record lows. With demand outstripping supply, the market is clearly presently geared towards the seller with RICS predicting that the average house price will have risen by 6% during the course of 2015,adding more than £16,000.00 to the £272,000.00 value of the average UK house at the end of 2014.

Turning to the lettings market, tenant demand has risen for eight months in succession with this demand outstripping the supply of new instructions from landlords. Again, a symptomatic rise in rent rates is likely over the short term, with forecasts of an upturn of 4.5% per year over the next five years.

If you are interested to see how much the value of your property may have increased by and to take advantage of the currently high demand for property, then call us today for a free, no obligation valuation today on 01695 581260.