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- UK PRIME PROPERTY PRICES SET TO GROW BY ALMOST 30% BY 2017, IT IS CLAIMED…Prime property prices in the UK are set to accelerate nearly 30% over the next five years with growth of 5.5% expected in 2013.The latest mid year forecast from agents Chesterton Humber is upbeat although it points out that there will be regional differences.
Overall it predicts total growth of 28.7% over the next five years. Prime central London price growth is set to average 8% per annum growth between 2013 and 2017 but East Anglia is expected to be a strong performer, outdoing London and the south of the country.
Despite the extended winter and concerns about the economy lurching back into a triple dip recession, the sector saw an increase in transaction numbers and house prices as well as a significant improvement in consumer confidence due to banks offering record low fixed rate deals and the introduction and extension of various Government initiatives.
The combination of these factors has helped boost activity in the market, acting as the much needed catalyst to release the pent up sales demand from aspiring buyers who have been waiting to seize the right opportunity.
'There has been a notable uptick in market activity so far this year, in no small measure due to the greater availability of record low mortgage deals,' said Nick Barnes, head of Chesterton Humberts' research department.
‘We have seen green shoots flatter to deceive before, however, this time around the level of consumer confidence appears more robust and if favourable mortgage finance remains available, the long awaited recovery may at last be sustained. What we need in tandem with this upswing, however, is an increase in housing supply to mitigate any potential price bubble,' he added.
Chesterton Humberts' is predicting that East Anglia will outperform London for the first time since August 2005, enjoying average increases of 6.3% per annum between 2013 and 2017, compared to London's 6.2%.
(source www.propertywire.com) Tues, 11 June 2013

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