Has the UK property market really turned?
The 0.9% increase in the average house price in the UK, in March, caught many analysts unaware and unprepared for the news. However, before we all get carried away and expect to see a significant increase in the UK property market it is worth remembering that things are still very tough in the UK. The economic outlook for the country as a whole is mixed to say the least with some suggesting a depression may just be around the corner.
When you also take into account the significant reduction in mortgage liquidity over the last few months, the large increase in deposits required and general lack of activity in the market, it does not bode well for a short-term bounce. However, there is no doubt that some investors are waiting on the sidelines for confirmation that the UK market has turned with substantial money available. Quite when and where these funds will be invested remains to be seen but if April and May produce similar figures to those from March then we could see property investors return to the market.
Whether we are seeing a return of the feel-good factor or a short-term bounce remains to be seen but thankfully we are finally discussing a more upbeat report on the UK property sector!
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