UK House Prices Rise

UK House Prices Rise at fastest rate since 2004 in Q1 of 2016.

UK House Prices Rise; house prices in Liverpool among the fastest rising in the UK. Due to investors seek value outside of the capital. Therefore, buying lower priced property investment in the northern regions such as Liverpool Manchester for strong capital growth & higher yields than achieved in London. Research from Hometrack, a UK based property research firm which monitors UK house prices across the largest 20 cities, showed in its UK Cities Index, that quarterly UK House Prices had grown 4.1% in Liverpool and London in the first 3 months of 2016, which is the fastest price rise seen in since 2004. This was caused a surge in activity as buy to let investors sought to beat the new stamp duty hike. Recently published figures from HM Revenue and Customs showed that in March 2016, the month before the stamp duty hike, the number of properties sold was 161,990. Thereofre representing the most recorded in a single month since June 2006 and significantly up from February 2016 where 92,690 sales were recorded. Furthermore, Hometrack identified the average house price in Liverpool stood at £113,000; 11% below 2007 peak prices, representing excellent value for investors. In contrast, the average price in London is £468,000 by Hometrack which is 52% higher than the 2007 peak.

Key Market Driver

The imbalance between supply and demand underpins the property markets growth. Therefore the UK property market will see prolonged growth despite a potential slowdown in Q2. Richard Donnell, insight director at Hometrack, suggested that following the rush to beat the stamp duty hike. We will see a decrease in the level of activity in the lead up to the EU Referendum. “We believe house prices will continue to rise but a moderation in investor demand and greater caution in the run up to the EU referendum will limit further acceleration in prices,” he said. “Most likely the rate of growth will slow more rapidly in high-value, low-yielding cities such as London where prices will be more responsive to weaker investor demand.” We are now seeing a shift toward lower value property purchases in areas of high demand outside of London. The strong growth potential available in the Manchester and Liverpool property markets are becoming more attractive for buyers. Furthermore, continued investment into infrastructure; projects such as HS2 is attracting foreign buyers. Investors from the Middle East and Asia are seeing the growth potential in looking to the Northern Powerhouse for investment. http://www.hanoversquarerealestate.com/buy-uk-property-from-dubai/ Follow the link for more reasons to Invest in the Liverpool Property Market