Some media is reporting “House price growth hits double digits” as a bad thing. Concerned about overheating in the property marked burning peoples fingers. I don’t think it will overheat like it did previously because the banks are on-guard. They are much more stringent when lending money, maybe too stringent in my opinion. So it’s a yes from me; It’s good news. Homeowners will have a boosted confidence so they will buy big ticket items like cars, furniture, caravans, kitchens etc.
Great news for businesses in the UK.
UK property values rose by 1.2 per cent in April from the previous month, with the average property price across the country now standing at £183,577.
This represents a continuing improvement in the value of homes that has been building over recent months and ensures the annual upturn in property prices now stands in double digits (up 10.9 per cent from April 2013) for the first time since April 2010.
Robert Gardner, Nationwide’s chief economist, responded to the results and noted this considerable return to the growth has been most driven by improvements within London and the south-east of England.
“In the first quarter of 2014, prices in the capital were around 20 per cent higher than their pre-crisis levels, while in the UK as a whole prices were still around 2 per cent lower,” he said.
However, with earnings growth now outstripping the rise in the cost of living and buyers gaining increasing confidence as a result, there is considerable scope for further improvements in the housing market across the whole of the UK over the months ahead.
With thanks to Housladder Ltd