What Will the UK Property Market Do in 2014?
In 2014, there is a very strong likelihood that the value of the UK real estate market will increase nearly 8%. There were surprise gains in 2013 that took place in all parts of the country, causing the estate agents and banks to estimate that this boom in the UK property market will continue throughout 2014. This seems to be the consensus view among economists and property professionals. There has been a round up of a survey that was conducted by more than seven banks, estate agents, and surveyors that shows that there will be a further growth in the UK property market and this is through the widespread forecast on the property markets.
Gains will be particularly strong in the South East and in London, partially due to the initiatives of the government in encouraging banks to lend more money for remortgage deals and mortgages, and for consumers to buy more property, in a program known as Help To Buy. This has greatly restored some degree of confidence to the property markets in the UK which has been lacking for the past few years, hence leading to increase in demand. Even though the government of the UK has tried to remove some economic stimulus and has brought about some minor changes in how the mortgage markets are regulated, the property market is nevertheless expected to rise in 2014 as demand for real estate booms.
The expected results of this increase in the property markets in 2014
Due to the public belief that the growth in consumer confidence in the economy in late 2013 is likely to gain momentum in the 2014, people are becoming more willing to buy real estate, driving the price up. Property professionals are expecting a high likelihood that there will be a large increase in the buying and selling of houses, and more than one million homes will be bought and sold. Due to the increase in the transaction levels there is a high expectation that the growth in the real estate market will be around 8 per cent, but may be in the double digits. All this is caused by factors such as:
- Better economic conditions
- Improved confidence
- Increased availability of mortgages
In the UK, the biggest winners in the property market boom will most likely be the sellers of high tech homes, the wrecks, and eco-homes. The UK property market has also split into two regions of particularly strong growth: London and South East. London is the biggest hotspot in the increase in the property market, growing at over 10 per cent last year. This is expected to continue throughout 2014. Due to the continuing boom in the UK property market in 2014, now is the best time for investors to invest more in real estate, and diversify their holdings.