UK Property Prices Show Signs Of Recovery

UK Property Prices Show Signs Of Recovery

Author: Gordon Parkes

The good news for the housing market is that property prices in the UK are gathering pace. While the sector has been in a slump, caused by the worldwide recession, it now appears that the housing industry has finally turned the corner with consistent growth being experienced nationwide.

According to leading property company Rightmove, property prices in the UK are now rising at their fastest rate in over three years. The company´s most recent index shows that property prices in the UK picked up by 3.2 per cent - an increase of 6.1 per cent on 2008´s figures. Property prices in the UK also saw a 0.4 per cent increase in December 09.

The rise in the market is good news for the industry, but it is also good news for most homebuyers - as confidence grows in the sector so does the number of properties on the market and the potential for sales increases. If you are looking to move up the housing ladder, this may be an ideal time.

However, the rise may price property out of the reach of some buyers. According to Rightmove, the steep rise in property prices in the UK at the beginning of 2010 may be too much, too fast for some buyers.

Miles Shipside, commercial director of Rightmove, said: "Sellers are starting to appear in greater numbers, but they must realise this market is more akin to the mortgage-rationed times of the 1970s and 1980s than to more recent times of relatively easy mortgage availability."

The Rightmove research reveals that property prices rose In February by a maximum of 7.5 per cent in East Anglia, with Greater London seeing a five per cent increase and a 3.6 per cent rise in south east England.

Meanwhile, the causes of the continuing rise in property prices in the UK is a matter for some debate, as it outstrips the current rate of economic growth and other economic factors, such as levels of unemployment, remain high.

A recent survey from the Chartered Institute of Personnel Development (CIPD and KPMG indicates that the employment situation is not set to improve. Many commentators have the opinion that the growth in the housing market is down to very specific changes in the industry itself and a rise in consumer confidence, and (at least for now) is relatively unaffected by employment.

The CIPD/KPMG report suggests that as economic growth continues the number of public sector jobs will decline, possibly outweighing the growth of jobs in the private sector. According to the report, a third of public sector employers could reduce employee numbers in the near future.

Furthermore, 6.2 per cent of employers across all sectors of the economy have plans to reduce their headcount says the report, while the previous quarters report (published in November 2009) had 3.8 per cent set to reduce staff.

The economic recovery is still in early days, however the housing market is leading the way. With property prices in the UK on the rise, the future looks bright for homeowners and those looking to move up the housing ladder.

The property market in the UK has seen slight growth throughout the past year. Now, with further stability in the sector, many consumers are looking to buy with more confidence. Learn what a recent report reveals about the trend in property prices in the UK.