The growth in property prices indicates economic recovery

The residential property prices in the UK grew by 7.7% for the three months in the fall of 2013, in comparison with the previous year, these are the latest figures financial giant Halifax, one of the largest banks providing mortgage loans.

This is the biggest jump in price over the last six years, now the average price of residential property reached £174910 pounds and will add about £2000 pounds to the price just in the last 4 weeks.

Data on the growth of house prices in the UK are supported by all agencies and real estate companies. The high level of demand for residential property, combined with the lack of a sufficient number of proposals for selection has led to higher prices. Interest rates on Bank loans declined for the entire year, in addition, significantly improved consumer sentiment, which was actively stimulated by the government with the help of government programs such as Funding for Lending and Help to Buy

However, the limited capabilities of many semeinyh budgets will put pressure on prices, as wage growth still lags far behind the growth of prices for residential property in the UK.

According to forecasts of the chief economist, IHS Global Insight (a major U.S. research Agency) Howard Archer, real estate prices, despite good growth in the end of 2013, still far from their peaks. He believes that the main increase in prices ahead, despite the termination by the Bank of England’s programme of assistance lending Funding for Lending . In addition, it is expected that the property market in the UK will show some very good data in December 2013.

He predicts that property prices in the UK will grow by about 8% in 2014, although in 2013, largely the driver of growth will continue to remain London and the South East of England. And if the excessive growth of house prices in the UK causing concern for many market analysts, the price growth on a national scale is very modest and average prices for residential real estate in the UK is still 12% below their peaks of 2007 .

® Alice Morgan G. 09.12.2013