Outlook for UK property market in 2013 ‘looks good’

Outlook for UK property market in 2013 ‘looks good’

2013 will be good year for the property market in the UK, following strong sales results from last year.

Summary:

  • Sales figures in 2012 reached their highest levels since 2007
  • Mortgage lending rose by £3 billion between 2011 and 2012
  • Property prices rose by 1.7% in 2012, with London values increasing by 8.4%

This year could be a good one for the UK property market, as Chesterton Humberts revealed positive sales results in 2012.

Yesterday (February 19th), the property consultants released its CHROME report, showing sales figures for property in the UK reached their highest level since 2007.

It also revealed mortgage lending increased by £3 billion from 2011, which is partly the result of government initiatives to encourage banks to boost the amount they let customers borrow.

Head of Chesterton Humberts Research Nick Barnes said he is “cautiously optimist” about the housing sector this year.

“The green shoots appear to have more substance this time and, provided we don’t experience an economic force majeure, I anticipate this year will mark a turning point in the fortunes of the UK housing market,” he said.

Property prices increased by 1.7% in 2012, the findings concluded, while London real estate rose in value by 8.4% over the 12-month period, taking the average home in the capital to £371,223.

Chesterton Humberts also recently revealed stock levels are 41% higher than they were a year ago, which suggests a positive outlook for 2013.

In its London Prime Residential Sales Market Snapshot Winter 2012/13 report, which was released earlier this month, it predicted prime central London capital  values will rise by 3.2% in 2013 and 7.3% over the next five years.