21 October 2009
Over recent months there have been modest increases in property values in the UK, and this has sparked renewed hope across the nation, with many industry officials claiming that the property price increases were signs of green shoots in the property market and the economy as a whole. However, a number of other industry experts were quick to predict that the property price increases were only a temporary blip and that the situation would not be sustained.
It appears that the more pessimistic economists and experts may have been correct in their predictions, as according to recent report there was a slight drop in property values in August. The figures were released by the Land Registry, which stated that there was a drop of around 0.1 percent between July and August. Whilst this was only a very slight drop it was nevertheless a drop, which will disappoint those that thought property values would keep on rising.
The figures from the Land Registry suggest that the house price revival may not be one that is going to be sustained, although officials from the Registry said: “The annual rate of decline is continuing to slow… from a low of approximately -16% experienced in February.”
HM Revenue and Customs has also recently reported that there was also a slight drop in property sales levels in August. In addition to this the number of mortgage approvals in August also fell according to figures from the British Bankers Association.
One official said that property increases seen over reason months were due to a rise in demand, stating: “A surge in demand and a shortage of quality property on the market is the principal reason prices are increasing. The big question now is how much pent-up demand from frustrated potential buyers remains in the system to maintain the momentum.”
Another official said: “The property market is surprisingly buoyant at present and sellers are achieving some attractive prices. Just how long this will last, though, is by no means certain.”
Tags: house market, house prices