Housing prices in the UK rose in may by 0.4%

The new data is the monthly index of property prices published in Halifax. Index Halifax

As follows from published data, residential property prices in the UK rose 0.4% in may. That is, we observed the fourth consecutive monthly increase, this indicates that prices gradually gaining momentum.

The last index of housing prices from Halifax shows that prices in the three months 2013: February, March, April 2013 was 1.5% higher than in the previous three months.

Currently, the average price of residential property in the UK is £ 166898.

Martin Ellis, economist residential real estate sector in Halifax, said activity in the market of residential property in the UK has improved somewhat in recent months, although the number of sales in the whole country remains low by historical standards, and overall, the market still behaves sluggish.

Despite the incipient signs of improvement in the housing market, the subdued economic background and the accompanying weak income growth continue to be a major obstacle in housing demand and activity in the real estate market.

However, if we compare longer periods, prices during the three months preceding may, was higher than a year earlier and the largest increase since September 2010.

A new survey showed that the vast majority of Londoners finds that housing prices in the capital will rise in the short term and long term, and the strongest growth will be noticeable in the prestigious areas of Kensington and Chelsea.

About 77 % of people living in London believe that the average price of an apartment or home in London will rise within the next 12 months. An even greater percentage of respondents, 83% think that housing prices in London will grow over the next 5 years.

To the question: “What will happen to home prices in their neighborhood?”, 74 % of Londoners said that prices will rise within 12 months and 80% of Londoners believe that in the long run – namely, in 5 years prices will also move up.

Thus, the Londoners the vast majority are in the belief that the growth of prices for flats and houses in London and also will last long and accordingly, a long time will increase the value of their own homes. Such confidence is fraught with disappointment, if it turns out that the prices are artificially inflated and there is a financial bubble. In this case, many people may be caught off guard.

® Helen Antre 08.06.2013 g.