Home prices in the UK rose in December, and are likely to continue to grow in 2014, according to Hometrack Ltd. Home prices in England and Wales climbed by 0.5 percent compared to December, the study states. Bloomberg reports that prices climbed 4.4% in 2013 after a drop of 0.3% the previous year. land
London's home value increase outpaced the rest of the UK, and in December this trend persisted. London witnessed the most development, rising 9.1% as of November, followed by a 5% rise in the southeast.
According to Hometrack, prices decreased by 0.5% in northern England.
Hometrack stated in a statement that "the finest market conditions and price inflation momentum are expected to remain concentrated in southern England." " A larger rebound in the property market depends on success in the actual economy, jobs and household incomes."
According to Hometrack, a gap between supply and demand contributed to this year's increase in values, a pattern that continues next year. The government's purchasing support plan, that helps homebuyers with modest payments, has also helped the industry.
According to Hometrack, this year's real estate demand grew by 25%, the most in three years, and domestic supply climbed by 6%, the lowest pace in 12 years.
According to Knight Frank, London's property prices finished 7.5% higher year-on-year with regional variations. Chancellor George Osborne stated at the start of December that, starting in April 2015, Britain will impose a house purchasers capital gains tax to fight the growing market.
The cost of a house in central London has increased to £1.70 million.
According to Cluttons, average prices in Central London at home reached a new record by year end of £1.70 million, up 12.60 percent compared with the previous year.
This year's total increase in values is almost twice as high as the 6.40% growth rate in 2012. In the fourth quarter, central London capital prices grew from 2.80% to 3.00%.
According to a survey published by Knight Frank yesterday, the prices of homes in Prime Central London were 7.5% higher than in 2012, and demonstrate a "clear" gap across metropolitan neighborhoods.
According to a research issued by Savills last month, the city has to create roughly 50,000 new homes every year in order to provide for the increasing demand for housing in the city.
Although debt financing has improved, many "renewable tenants" are still unable to buy a property. On the other hand, rental demand remained constant.
Cluttons predicts that the Central London net rental demand fell 1.5% in quarter, after a modest increase of 0.30% in the previous quarter.
Buy-to-lease purchasers are expanding the rental property supply as their economy improves and pension opportunities diminish, and rental prices are falling more.
"The steady renewal of incentives has helped to increase the number of buy-to-let homes on the market in recent times by reducing rates of rise in rental value by raising supply against a backdrop of poor demand," says James Hyman, partner at Cluttons UK, in the poll. "The improved economy leads to a rise in housing renovations in London; nevertheless, houses are not recycled, as owners turn their old homes into rental properties, reduce available sales and increase price pressure."