I am sure you would have all seen in recent months according to official statistics that house price inflation in the UK is continuing to rise at a gradual rate both in London and the regions. No doubt you will have also heard the talk of a “housing market recovery”. For all of those involved in the property sector increased levels of transactions both in the residential and commercial markets can only be deemed as a good thing.
The property market has had its difficult times in recent years and market conditions on the whole still remain very tough. Recent RICS figures suggest that prices are rising at their fastest since November 2006, with the largest levels of activity coming in the West Midlands and the North East.
Does this mean the property sector is now heading in the right direction? For now our view is that it is still difficult to say.
For some, rising house prices are not always seen as a positive thing (particularly for first time buyers and for those with young families who are looking to get onto the property ladder). Some economists are of the view that rising house prices can put the whole economy at risk. There is no doubt that since the 1970s the UK has had several boom and bust cycles which many believe are not healthy for the economy.
It would also seem that Government incentives such as the “Help To Buy” scheme are having a substantial effect upon the market. It is probably fair to say that in recent months we have seen a slight increase in lending from the usual high street banks.
For our large investment/developer clients this news will be most welcome to them and indeed many of them have seen large increases in their share prices in recent months. As a firm in recent months we have also seen an increase in the level of both commercial and residential transactions. Which for us is good news!
We welcome your thoughts on how you are finding the market at the moment and do you think rising house prices are a good thing or bad thing?
We would also welcome your experiences on how you are finding schemes such as the Government Help To Buy scheme.
If you have any comments on the above issue or require any legal advice on any other property matters, then please feel free to contact Richard Holmes on firstname.lastname@example.org