House Prices to remain Flat according to Halifax
A new report released this month by the Halifax, shows their opinion that property prices will remain flat and we will see little movement until mid 2014. At the Peak of the boom at the back end of 2007 the average house price stood at just under £200,000. Nowadays, this figure is at £165,000 and nationally hasn’t seen much movement for the past couple of years. People did expect things to be far improved by now but unfortunately this hasn’t been the case. No one predicted that the Euro Crisis would become more prominent as time moved on and it was assumed that the the initially impact of the global recession was as bad as things could get. Many do believe that it’s the Euro Crises that’s continuing to hold us back now and it’s certainly apparent that the banks and the government are taking a very cautious approach to growth.
Different story for the Capital
Amongst these dreary figures and projections, it’s also been discussed that none of the above applies for London. In contrast the average house price in Chelsea and surrounding areas is over £1m and rather than moving backwards prices have achieved record highs and appear to continue to do so. Some say that foreign investors have helped drive up the price but quite clearly the mere fact that their isn’t any new space to build and that the city has pretty much run out of new land, means that there are many more people wishing to live there than the amount of houses available. People who still work in the city are now being forced to the outskirts which in turn are becoming hot spots as can be seen in this article about Surrey. For prime location properties it will be amazing to see how high these prices may go in the future particularly as the population of the UK continues to increase. When looking at the world population it has doubled over the past 40 years and currently stands at over 6bn, it’s predicted to increase to 8bn by 2025. London is known as a major city and people are starting to realise that it’s a safe haven that should only go up in price.
The value of agricultural land has increased due to a lack of supply
In recent years these price increases due to a lack of supply have already been seen with UK farmland. You may think that agriculture industry isn’t what it used to be and sure farmers have been hit by lower prices demanded from the Supermarkets and even more so being forced down by cheaper imports. Still the price of farmland has dramatically increased, back in 2003 the average acre was at around £2000 now it stand at over £6500 and it hasn’t even been 10 years. According to a report by the Royal Institute of Chartered Surveyors it is a lack of available farmland that has driven this price to record highs. Prices of commodities have increased over the past decade but it’s the lack of new available land that has pushed prices so high.
Should you look to buy property in Prime locations?
Of course for investment purposes this has surely got to be a good strategy to consider. Areas such as Bath and Sandbanks have proven to hold their value. Reason being their is no more available space to expand and beautiful locations should always remain popular. Getting on the ladder with these locations now could pay off in surprising sums in years to come and will probably be the same old scenario of the rich get richer, simply as the UK population increases.
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