Thirteen, an unlucky number for many, but what does this mean for property prices in the UK. Depending on which tabloid publication to believe, there is potentially an unsettled 2013 ahead for the property market. Unsettled? Again this may be positive settled, this just depends on what side of the fence you are sitting. So what are industry experts predicting?
From research carried out during 2012, this showed an increase 12% entering the property market for the first time compared to the same studies undertaken during 2011? This was the first time the property market has seen an increase in those taking the first tentative steps on the the property market since 2007? So why have first time buyers received this boost of confidence? As the UK along with many other nations across the EU have been in out of recession for almost six years, many now believe that this era of financial austerity can’t last for much longer. This has been further aided by the Coalition Government announcing investment into the countries infrastructure, with finance for new roads and housing schemes looking for the go ahead in 2013.
For those looking to sell a property though, bad news could lie ahead during 2013. Trends figures suggest within the North of England and parts of Scotland that house prices could drop as much as 4%. So for those looking to purchase a property, its safe to say that at present, it’s a buyers market. How can buyers exploit this then? Rule of thumb is to look at how much other properties in the area are currently on the market for. Conduct some self research and find out how long the property has been on the market for. Remember the valuation set six months ago will be more than it is currently worth at this present moment. With this in mind, make an offer at a lower prices, you are bound to come to a compromise. For those who rent, what does all this mean to you? East London Lettings Agency suggest that for the time being no effect will be felt, as many landlords do not want to pass on extra costs to their tenants. If property prices continue to fall though, don’t be shocked to hear that any extra costs are passed on to tenants.
As stated before, the property market of 2013 highly depends on what side of the fence you are currently on. Analysts report though that the future of the UK’s property market looks considerable healthier. Trends suggest that 2014 will see growth in property prices with 2015 set for at least a 5% increase in value compared to current valuations.
Play the Field
Its important to realise that trends are only forecasts and such figures suggested maybe completely different in six months time. The property market is very temperamental, and to understand it to its full potential requires an open mind and a willingness to conduct your own research.
Stephen works as property analyst and blogger. Stephen conducts research into what first time buyers should be considering when entering the property market for the first time.