How much increased property prices in the UK?

 Apartment in London Luxury prestigious index W9 £1300000

The average value of residential property in England and Wales rose £ 6726 over the past 12 months, while sales increased by 18 %, these are the conclusions based on the April data Index LSL Property Services Acadametrics

These data showed increase property prices in England and Wales is £707 in the last month , but a monthly increase in prices of houses and flats in England and Wales was on average 0.3% per month over the last 17 months, and falling prices only one month

The whole picture shows an annual price increase at 3 %, but if you look differentially, we see that this growth was facilitated by the movement of the prices up on real estate in London. In other regions, real estate prices in England, especially in the North of England and Wales showed a negative annual values.

The total average price for residential property in London over the last 12 months increased by 10.6 % in Eastern England – 3.8%, about 1.5% in the South-East, a 1.1% increase in the price of real estate in the Mid – West of England, about 0.8 % showed annual growth rates in middle-Eastern England, about 0.6% – in the South-West and about 0.2% in the North West.

Prices for residential property in Yorkshire and the Humber remained unchanged over the same period , 1.1% of the prices fell in Wales, 1.3% and prices fell in the North of England.

According to David Newnes, Director Index LSL Property Services Acadametrics and the owner of real estate, the catalyst for growth in property prices began improving conditions of mortgage lending.

The fact that the number of sales increased by 18% means that the conditions for buyers have improved significantly. A lot of offers of cheap mortgage conditions have led to the activity of buyers.

Impact the impact of Fund Lending, the FLS, which achieved a significant acceleration of lending at various levels of a wider range of borrowers. On the mortgage market the UK real estate showed signs of competition, which means that we will see a significant improvement in the levels of lending in 2013.

David Nunes also expressed concern related to the fact that high figures on the London real estate market are pulling up the average property prices in the UK and cover weaknesses in other areas of the country such as the North of England and Wales.

If you remove London from the statistics of the national picture, and an indicator of national growth immediately drops to 1.1%. There is also the widening gap between the types of houses and income. In London fixed prices for expensive luxury properties cost from £1 million – 5% in 2010/2011 and by 5.7 % 2011/2012 years. This despite the fact that in the rest of the country the property value from £1 million saw a drop of 5.3% and 8.5%, respectively.

The share of London in the General real estate market worth £1 million – £2 million is growing very fast and the number of luxury homes continues to be disproportionately large share of the market.

Despite difficulties with financing, the UK government is taking all vital steps to progress on the housing market in the UK. The real estate market was fairly taken as a basis for recovery. Numerous programs for buyers, such as FLS, “HelptoBuy”, “NewBuy” and”FirstBuy” to construction loans and mortgages, taken with the aim to stimulate the market against strong counter-resistance of the economy.

However, it should be acknowledged that conditions in the mortgage market are still in need of improvement – in particular, serious difficulties experienced by the buyers who first buy a property.

Banks overestimate the risk factor for the loan to such borrower, therefore, they require a large down payment and exhibited high lending rate to cover their risks. If banks will be able to remove these restrictions for these buyers, the number of mortgage deals will increase significantly.

® Maxim Savitsky. 11.05.2013.