24 Feb

UK property market shows signs of recovery

UK property market shows signs of recovery

The latest research suggests the future for the housing market is largely positive across the whole of the UK.

Estate agent Strutt & Parker predicts that house prices will grow by five per cent in the UK this year, although prices in central London are expected to stabilise considerably with a zero per cent rate of expansion.

It is expected that all parts of the UK, especially the Greater London area will benefit from people looking for more affordable homes away from the capital.

Stephanie McMahon, head of research at Strutt & Parker, added that the increasing likelihood that a base rate of interest rise will not happen until the second half of the year is having a positive impact.

"This combined with continued wage growth and low inflation, should give the national market the momentum it needs. We should see a flurry of activity up until the autumn as buyers take advantage of the low interest rate environment," she explained.

The report also examined the increase in interest in country homes worth more than £2 million. According to the research, 79 per cent of buyers purchased these properties to use as their main residence, while 13 per cent were looking for a second home and eight per cent were buying as an investment.

James Mackenzie, Strutt & Parker's head of country department, said: "We are witnessing at least double the amount of potential purchasers enquiring about properties we are currently offering or are now bringing to the market.

"However, our viewing levels are not higher, which would indicate that there are a significant number of people who are beginning to look at moving but are waiting to see what the market has in store for this year."ADNFCR-1222-ID-801777030-ADNFCR

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