At last there is a feeling of hopefulness returning to the UK economy generally and more specifically the UK property market, and the economy at large. After years in the doldrums property is once again a hot topic. Gone are the downbeat messages of negative equity and repossessions, instead the papers are filled with positive headlines. We are instead more likely to read about increasing house prices and growing availability of finance with many speculating that we are now heading into a more prosperous period. This looks set to become a growing trend and we will see an increasing number of these news stories in the media over the forthcoming months.

Upwards Housing Graph

It has been a great few months for the UK.  Basking in the sunshine of the best summer in years, we have experienced some amazing sporting achievements such as Wimbledon, the ashes and the anniversary of the London 2012 Olympics.  This along with the news of a Royal birth has created a feeling of optimism that is spreading across the country. It really does feel, as a country we have turned a corner and the worst times are well and truly behind us.

At last there is a feeling of hopefulness returning to the UK economy generally and more specifically the UK property market, and the economy at large.

After years in the doldrums property is once again a hot topic. Gone are the downbeat messages of negative equity and repossessions, instead the papers are filled with positive headlines. We are instead more likely to read about increasing house prices and growing availability of finance with many speculating that we are now heading into a more prosperous period. This looks set to become a growing trend and we will see an increasing number of these news stories in the media over the forthcoming months.

This increasing level of confidence will have a huge impact on buyers and potential investors.  Encouraged to once again spend money on property this will inevitably drive up demand and ultimately house prices.

There are other key factors which are contributing to the upward trend in property.  Affordability is playing a huge part and is beginning to make an appearance again.  Efforts by the government to stimulate the housing market by introducing schemes such as ‘Help to Buy’ are set to have a massive impact on the purchasing of more homes.  

The balance of supply and demand, a critical element when considering property, remains stable in that there still continues to be a high level of demand with a limited supply.

Other financial implications which are having a direct effect on the UK economy is the appointment of Mark Carney as the new Governor of the Bank of England. With his reputation for proactive and creative strategies for growth and a promise to keep interest rates low (at least for the next couple of years), he has boosted confidence to greater heights.

All of this coupled with the general feel good factor that is present in the UK at the moment has created a level of optimism that we have not seen for a number of years.

The message to be taken from this is that confidence is growing and quickly.  It is already encouraging those with an interest in property investment to take the leap.  

 

Thanks to Platinum Portfolio Builder for this article. 

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