In the second half of the year, private home prices across the United Kingdom rose by more than three percent. The increase in prices has left many people with a difficult time in finding a home that they can afford and one that is in their price range. However, property experts believe that the steep rise in prices is here to stay over the coming months and years. “We are not seeing a sudden and dramatic rise in prices from anywhere in the United Kingdom, but we are definitely seeing a continued upward trend,” said Jake Henderson of Savills. “We have seen this sort of increase in prices in the past, but this is certainly the highest that we have seen.” Even though prices remain elevated, the prices for Belgravia Ace remains affordable as it is the first phase of the launch.
What’s behind the steep increase in prices? According to experts, the steep increase in property prices is being driven by factors that will not likely affect buyers anytime in the near future. In addition, while the steep increase in prices is good for the property market, it is not good for the economy as a whole. The steep increase in property prices is being driven by the rapidly depleting supply of properties on the market. In other words, there are just too many homes available for sale right now to handle the demand that is currently there.
As the number of new homes and old homes continue to diminish, the supply remains constant. On top of that, with the number of homes available, demand continues to increase at an alarming rate. This demand is based on two major factors. The first factor is that there has been a growing population in the United Kingdom over the past decade and a half. The second factor is that the Baby Boom generation is starting to get older and that they are driving an increased demand for homes.
The number of people getting married over the past five years has been quite significant. This sharp increase in the marriage rate has meant that more people are competing for the homes that they want to buy. Because of this, the prices of private home prices have increased substantially over the past year or so.
If you look at the national picture, then you will see that property prices in general are increasing very rapidly. This is also happening in the United Kingdom. However, if you look closely at the situation in London and the South-east, you will see that there is a much different picture to take a look at. In London, you can see a marked distinction in the number of properties for sale on the market compared to the rest of the UK. While there are plenty of new homes being built in the capital, they are nowhere near as many as there have been in the past couple of years.
The picture in the south-east is quite similar to London with demand outstripping supply. This means that prices have continued to rise but noticeably so. While the numbers are small compared to other parts of the country, they are still growing at a rapid pace. Whether this is a result of the growing population and a desire to own a home in an area where they feel safe and where there is sufficient commercial development is open to debate.
When it comes to the consumer, the main concern is likely to be the effect that rising prices have on household budgets. The higher costs mean that families’ discretionary income has been stretched. More people are finding themselves asking ‘what can I do to keep my family budget unaffected’. As a result of this, many people are looking to buy second homes or renting a holiday home in areas outside London or the South-east.
The situation is similar with demand; people want to move to areas where they feel they will be able to get good deals. With increased demand, the supply has not kept up with demand. London remains a highly desirable place to live for property buyers. However, if you choose to buy in the UK, you will probably find that the rates of house price inflation has greatly increased, making it harder than ever to find a suitable property. If you want to escape the UK property bubble, you will need to act fast – if you delay your purchase it is almost certain that prices will continue to rise, meaning that the only way to remain affordable is to off-set any increase with a property investment.