Property prices in the UK could rise by 10% in 2014

Prices for residential property in the UK can see the price increase to 10 % in 2014 due to the chronic shortage of new properties for sale and accordingly, the imbalance of supply and demand. This forecast was given by experts of the company engaged in “Buy to let” investment – Assetz. A year earlier, the company successfully predicted 5% growth in house prices in the UK, hitting the point with his prediction. According to the company, in the medium term can not see the solution to the lack of supply of new facilities on the residential property market in the UK . Small and medium-sized construction companies suffocate from lack of funding.

In 2013, residential property prices in London showed record growth in 2014 the same trend will spread to the UK regions and significant price increase will affect all cities. Especially noticeable the price increase will be in urban centers and suburbs where there is good employment of the population in such places is about 85% of all residential property in the UK. The remaining 15% of homes where employment is low and economic conditions of these places are quite poor, are unlikely to see strong price growth.

The company’s experts also note that there is no real solution to the problem of lack of funding for small and medium-sized construction company. Despite the fact that many construction companies intend to double the supply of housing in 2014, it still does not solve the problem of shortage of enough to temper the increased demand.

In this regard, the projected decline in yields of “Buy to let” investors by about 0.5% – 1% during the year. The rise in property prices outstripping the growth in rents. Without the infusion, so essential in the construction industry, unfortunately, there will be a further decline in the profitability of investors buying a property to renting it out.

Small and medium companies in dire need of any help of the government in various programs and in the facilitation of planning and coordination. Such measures will bring real help to the construction industry.

® Alice Morgan. 31.12.2013