19 April 2010

UK property prices experienced a 2% rise in the first quarter of 2010, which is 4.3% higher than they were this time last year.

According to a recent price index* house values have increased in every region of the country apart from Scotland. The Home Counties are leading this growth, with 2.9% increase in the first quarter of the year and an annual growth of 9.1%.

The increase in house values has been attributed to a continued imbalance between the supply and demand of UK housing, as there is a lack of quality housing for sale. With listed property still very low there is expectation that more housing available in the market after the general election, as there is traditional a lull in activity around this time.

Rupert Sweeting, Knight Frank head of country department, commented: “Provided that the economy does not have to suffer the uncertainty of a hung parliament, the remainder of 2010 offers a great window of opportunity for buyers and sellers to secure a deal before a possible rise in interest rates and an increase in stamp duty from 4% to 5% in 2011 for properties worth over £1million.”

   * Knight Frank Prime Country House Index

Source: Property Wire

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