Property Prices Recorded 6.1% Yearly Jump
Residential property values had recorded a yearly 6.1% increase throughout the whole United Kingdom.
UK Property Website, Rightmove, released its report on the trend of UK house prices in February. A 6.1% increase in values over the past 12 months is reported – contributed to the average property prices to £229,398 this month. More importantly, this figure is 3.2% higher than the figure being released in January 2010. This monthly increase hit the record of the biggest jump for homes in England and Wales since April 2007 (i.e. the period of the real-estate boom).
Particularly, the asking price in London has climbed up to a record high of £427,987. The rise in average house prices suggested the supply and sales of homes is beginning to increase gradually – where homeowners who had delayed their selling in the previous year are more willing to release their houses for sales. Other than that, the increase in house values has said to affect the buy-to-let sector with less landlords wanting to expand their property portfolio.
Residential Landlord Association (RLA) commented that the 6.1% increase is a healthy rise for the property market; yet, some predicted the values will fall again later this year. Ian Perry of the Royal Institution of Chartered Surveyors (RICS) mentioned that this inflation in house price was contributed artificially by the lack of supply in the housing market; however, he further explained that with the increase in supply within the property market and the static low buy-to-let loans and mortgages, the price may soon decline again.