Housing Market Predictions from Estate Agents for 2013
It appears that we are not quite completely out of the woods. many infamous estate agents have commented in the fall of the new year and predictions aren’t great. Firstly, lets take a look at where we ended up last year and after that this article will discuss the speculative predictions from estate agents.
Has the Property Market improved
The simple answer is No! House prices slightly retracted across the whole UK and ended up 1% on average for 2012. In contrast, Properties in central London have seen a 9 % rise. Unbelievably Central London house prices are 34% higher than they were at the bottom of the Crash in 2009 that’s a large contrast when compared to majority of the UK and a relatively strong financial hub and unprecedented sales in super homes from wealthy overseas investors.
Predictions for London
It’s predicted that for 2013 these London Hot spots will cool down due to recent job losses in the city i.e. 11,000 employees from City Group and restrictions on high end bonuses have recently taken place so if you live in this area it will be slightly more difficult to sell your house fast. According to Knight Frank and it is difficult to believe but they’re predicting that the London House Market won’t show any further growth during 2013 this is due to tax changes that will affect prime London property.
Predictions for the Rest of the UK
For the rest of the UK Knight Frank are particularly bearish and they believe that it will take at least another six years to return to the peak values of 2007. Personally I only believe it will take another few years as the average house price is only 11% lower than it’s highs. However this is being artificially propped up with a higher average from hot spot areas and the situation is dramatically different across the country. More realistically Knight Frank do believe that transaction levels will improve in 2013 and expect property transactions to rise by 2%.
New House Builders doing well
According to The Telegraph house builders have been doing particularly well and 2012 showed them a record year for recent times. With a 64% rise in property developments the likes of Barratts Homes and Bovis are doing particularly well. Many of the house builder bought land a few years ago when it was particularly cheap and now coupled with recent government initiatives to help buyers this is allowing them to surge forward in the property market. This is unfortunately negative for existing home owners as they are loosing possible buyers to more affordable new build homes.
In summary it appears that 2013 will be a similar year to 2012, with further tightening of lending criteria from the banks and no sign of the economic situation improving across Europe and the rest of the world there doesn’t appear to be any reason for buoyancy and our financial system will probably remain cautious.
“YouSellQuick gave me a very good deal and helped me through the whole process.”
“I got exactly what they offered in my bank account, nothing less, no extra fees or commissions.”
We can buy your house right now, please contact us
We can give you a preliminary offer over the phone
Final offer is subject to independent RICS valuation