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House prices to increase as property demand outstrips supply…

April 1st 2014
By: Melanie

News that nine out of ten IFAs (Independent Financial Advisors) in the UK expect house prices to increase during the next three years was no big surprise as property demand in the South continues to outstrip supply.
 
These new figures from a survey by Castle Trust, who offer investment products, say that 86% of IFAs predict that between 2014-2019 that house prices will steadily rise, with only one in twenty IFAs saying that we will see a dramatic increase.
 
Only 6% think that house prices will fall, with 1 in 14 anticipating a rise of over 50%. The ONS (Office for National Statistics) stated in February this year that the average house price in the UK had increased to £250,000 for the first time ever. However, figures released by the Halifax and Nationwide predicted that the average house price is indeed £175,000. By 2014 the IFA expect that house prices will have increased by 21%. However, when considering these figures it is important to take into consideration that London has experienced unprecedented increases, and any national figures usually take London into consideration when evaluating average prices.  
 
The survey also highlights that 51% of buy-to-let investors are concerned about buying further property because of problems with tenants and lack of tenants.  49% of investors say that their hesitation derives from the deposit and 41% think that renting a property is too inconvenient.  
 
Sean Oldfield CEO of Castle Trust stated: “It is clear that confidence in the entire UK housing market is finally taking hold and is no longer just confined to London and the South East. This is starkly apparent from our own results as we have witnessed record flows into our Housa products, presumably because their returns are tightly pegged to the Halifax House Price Index.”
 
If you are looking to invest in a buy-to-let property in Surrey then why not pop into your local branch of Goodfellows for a coffee and a chat or call us on 0845 372 7070.