The market is in its best shape since the financial crisis as demand continues to outpace the number of homes for sale, adding to
values, according to this recent article by South China Morning Post on September 4th, 2013.
British house price growth accelerated last month amid the strongest
market conditions for six years as demand continued to outpace the
number of homes for sale, Hometrack said.
Average values in England and Wales rose 0.4 per cent after a 0.3 per
cent gain in July, the London-based property researcher said. Prices
were up 1.8 per cent from a year earlier, the most since July 2010.
In a separate report, the Engineering Employers' Federation raised
its forecasts for UK economic growth and manufacturing output.
Hometrack's survey adds to evidence of a mini-boom in the housing
market, with reports last week showing values rising and mortgage
approvals at their highest since 2008.
Bank of England Governor Mark Carney said he was alert to risks from
the property market and policymakers would act if signs of a bubble
emerged.
Richard Donnell, director of research at Hometrack, said: "A lack of
housing for sale is set to remain a feature of the market and this will
keep an upward pressure on prices in the near term.
"We expect demand to continue to expand over the remainder of the
year so long as the outlook for the economy and mortgage rates remains
unchanged."
Underlying market conditions are at levels not seen since the
financial crisis, with the average time taken to sell a property falling
to 8.1 weeks and sellers achieving 94.6 per cent of the price sought
last month, Hometrack reported.
New buyers registering with real estate agents to browse property
rose 1.1 per cent, the same as in July. Demand fell in August in each of
the last three years. Growth in new property listings slowed to 0.8 per
cent from 2.4 per cent.
Seven of the 10 regions tracked by Hometrack showed price gains, led
by a 0.9 per cent increase in London. Two regions showed no change while
values dropped 0.1 per cent in the northeast.
Signs of economic growth have lifted consumer confidence. The economy
expanded 0.7 per cent in the second quarter, and recent data suggests
the recovery is gaining traction.
A survey by the manufacturers' organisation EEF and the accounting
firm BDO showed manufacturing output rose to a three-year high in the
third quarter, with a gauge of production rising to 32 from 12.
A measure of investment intentions rose to 24, the highest in six years.
The group raised its forecast for manufacturing growth next year to
2.1 per cent from 1.9 per cent, following a 0.5 per cent contraction
this year.
It also raised its forecast for UK gross domestic product growth to
1.2 per cent this year and 2 per cent next year, versus earlier
projections of 1.1 per cent and 1.8 per cent.
"Industry's prospects have brightened considerably," said Lee Hopley,
chief economist at the EEF. "There is growing confidence that improving
trading conditions will continue into the final months of this year and
then accelerate through the gears in 2014."
Nationwide Building Society said last week that home prices rose 0.6
per cent last month and the Bank of England's commitment to maintain
record-low interest rates until at least the end of 2016 may be helping
to support demand.
Article Source: http://www.scmp.com/property/international/article/1302634/prices-climb-amid-strongest-market-conditions-six-years-uk
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