UK asking prices down apart from in Scotland, latest index shows

Taylor Scott International News

Asking prices have fallen across the UK apart from Scotland, month on month, according to the latest data from the Home.co.uk index, but are expected to growth by 7% in 2015. Prices fell 0.7% overall in England and Wales during the last month and that means annual growth dropped to 7.6% while Scotland saw asking prices go up by 0.3%. Looking at annual asking price growth, most of it was in London and the South. Indeed, Greater London experienced growth of 15.9% over the last 12 months. The data also shows that supply in the capital region has risen considerably since last year, up by 39%, and according to Doug Shephard, the firm’s director this will serve to attenuate price rises in 2015. ‘Looking ahead, we anticipate that 2015 will be a more consistent year for UK property prices than 2014,’ he said but pointed out that with the prime central London market showing signs of slowing down average prices are likely to rise less quickly next year. ‘Record low mortgage rates will stoke demand whilst record prices in London and the South East will encourage more potential vendors to cash in. Hence, both supply and demand is expected to rise, thereby increasing the volume of the sales market towards more normal levels,’ he explained. Prices are predicted to rise 7% overall in 2015 and most pronounced in the South, especially the South East and East Anglia, although the northern markets will continue to improve, albeit slowly. The report also suggests that price rises will be less pronounced in London than they were in 2014, rising by around 10% and the supply of property for sale will increase by around 25% over the course of 2015. ‘East Anglia and the South East look set to be the leading regional markets next year owing to their much improved marketing times. Supply of property for sale remains low historically in these regions and this will keep prices on an upward trajectory, although we do anticipate market volume to steadily increase over the course of 2015,’ said Shephard. ‘The East Midlands also looks primed for a good year ahead. We expect above average price growth and lower marketing times in 2015. Looking further afield, the North of England property market, hampered by employment problems and austerity measures, will continue to improve slowly, as will Wales,’ he pointed out. ‘Across in the South West and West Midlands, further market improvements are to be expected, but growth there is likely to be slightly lower than the national average,’ he added. However he also pointed out that these predictions are based on there being no change in interest rates. ‘Should there be even a small rise in the Bank of England base rate, market sentiment would be severely dampened. A more dramatic hike of 1% would likely bring down price growth to zero for 2015,’ he concluded. Continue reading →

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