Housing Price Tips for 2014
Mon 13 Jan 2014
The housing market sprang back to life in 2013 but what does 2014 have in store? Vicky Shaw investigates: Whod have thought this time a downbeat year ago, that 2013 would be the year the housing market finally re-gained its mojo?
And yet, fast forward 12 months and a recovery is clearly well underway, with building society Nationwide just reporting that house prices across the UK surged by 8.4% over 2014.
While much of the upturn has been put down to London and the South East, other areas are also seeing some big price increases. In Manchester, for example, housing prices have surged by 21% over the last year.
Meanwhile, the number of mortgage approvals made to home buyers lifted to over 70,000 in November, according to Bank of England figures, marking the highest number of loans given the green light since January 2008.
New research out from Halifax also suggests activity will show little sign of slowing down in the coming months. A few economists and housing markets experts have been gazing into their crystal balls to see whats in store for the housing market in 2008
The Royal Institution of Chartered Surveyors (RICS) experts to see a further house price uplift, fuelled by a continued shortage of homes buyers to choose from.
It predicts an 8% rise across the year, with all areas of all areas of the country seeing increases, ranging from 11% in London to 4% in Northern Ireland. Scotland and Wales are excepted to see prices lift by around 7%.
The Council of Mortgages Lenders (CML) believes the housing and mortgages markets look set to continue to see greater activity in 2014 but it adds that an unbridled housing boom is unlikely.
The CML forecasts a rise in gross mortgage lending from an estimated 170 billion in 2013 to 195 billion in 2014.
Halifax experts house price rises in 2014 to be broadly similar pace to those seen last year. Overall prices nationally are forecast to increase by between 4-8%.
Halifax housing economist Martin Ellis says: mounting signs that the economic recovery is becoming firmly established, together with a predicted decline in unemployment, should further in boost in consumer confidence.
This will increase the likelihood that more people will consider buying a property in 2014, therefore supporting housing demand. We also expect the Bank of England rate to remain very low, helping to support low mortgages rates and therefore housing demand.
He says that while London has led the recovery, the pattern of increase is set to become more Broadly Based.
Estate agent Marsh and Parsons forecasts that prime London house prices will rise by between 5% and 7% in 2014. Peter Rollings, CEO of Marsh and Parsons, says: Londons housing market saw a substantial uplift in 2013, and we expect a similarly strong start to 2014 to drive an annual rise in price.