House prices in the UK show 10.4% annual increase
Property growth predictions 2015
Recent figures have seen the average UK property rise in value by as much as £2,000 each month, an annual increase of 10.4%.
In December, data from the Office of National Statistics showed an average house price of £271,000 compared to £247,000 in the same month the previous year, a total increase of £24,000 in a year. The report also showed a rise in house prices in regional areas of the UK, with the North West showing a 6% increase in comparison to the same month in the previous year.
Experts are predicting the property market to continue this growth throughout 2015, one of which is the Royal Institution of Chartered Surveyors (RICS). In their latest report, RICS are forecasting a house price increase of up to 3% over the next year, while rents across the UK are believed to increase by up to 2%.
As house prices continue to rise at a steadier pace, it is anticipated that some regional areas may see stronger growth than others. The North West and Midlands are reported to see a house price increase of 5% over the next year, according to RICS, whereas London is said to see no rise in house prices at all in 2015.
What does Sequre say?
Graham Davidson, Managing Director of Sequre Property Investment comments on the latest RICS predictions for 2015:
“Throughout 2014, we have seen South East based buyers dominate the North West’s buy to let market as they search for investments that offer better value for money as well as provide stronger returns. This is a trend we expect to continue for the foreseeable future.”
“London prices have risen faster than anywhere else in the UK over the past four years and this is a trend that simply could not continue. The changes to capital gains tax for overseas buyers and the collapse of the Russian Rouble is likely to further deflate the London market, meaning investors will continue to look outside the capital”
He adds, “In contrast the North West, with Manchester in particular, has seen steady house price increases alongside major economic investment into schemes such as MediaCityUK, Manchester Airport and the Manchester Metrolink system. The recent launch of direct flights between Manchester and China coupled with the One North transport initiative means that the region’s appeal will only grow, which spells further good news for capital growth in the North West and buy to let investors.