UK property showing strongest annual growth in 10 years

UK property showing strongest annual growth in 10 years

Property investments appreciate 11.3% in 2014, while long-term demand for property looks set to remain high.

Summary:

  • House price values in the UK rise by 11.3% in 2014
  • Stamp duty changes and an upsurge in first-time buyer activity are set to underpin future strength
  • Buy-to-let property continues to be popular with investors, as gearing activity continues

Property investors experienced capital appreciation of 0.8% over the course of November, taking annual growth to 11.3% across England and Wales.

The latest LSL Property Services/Acadata index for last month shows the average house price is now £280,733 – the highest value since the index began.

“Annual house price growth across England and Wales has more than doubled over the last 12 months, accelerating from 5.4% in November 2013, to 11.3% during the past year,” said the Director of Reeds Rains and Your Move estate agents David Newnes.

He also explained that the recent changes the chancellor made to the Stamp Duty boundaries in the UK will kickstart more buying activity due to the savings they represent to buyers.

Another consequence of the change is that sellers will be able to price their homes more realistically, without the need to negotiate prices according to the previous threshold barriers.

The long-term strength of the UK property market was also highlighted last week by a Council of Mortgage Lenders report that revealed the amount of first-time buyers in the UK increased by 12% in October, which was actually a 14% rise on the corresponding figures from 2013.

According to the research, lending to homemovers increased month on month, with the total number of loans agreed reaching 35,000 – a 10% rise on the previous month and 4% above 2013’s figures.

The buy-to-let property market continues to perform well for investors and as a result October saw lending rise 8%, with a total of 19,600 buy-to-let loans being issued.

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