Only a few days ago it appeared that buyers in the UK were more than happy to acquire property prior to the election but now it seems that some buyers have decided against stepping into the unknown. Whether it is the potential for a hung parliament or just the general uncertainty regarding the outcome for next election is debatable but signals from the property market are mixed to say the least.
The number of first-time buyers in the UK property market hit a 20 year low in the year to February with just 347,000 new entrants to the property market. While this compares a little more favourably to the 331,374 a year earlier it is well below the figure of 700,000 back in 2004/05 and perfectly reflects the difficulties facing the UK property market.
The number of prime properties - properties costing in excess of £2 million - sales completed in London rose by 105% in March compared to the figure in February. There has been an overall increase of 83% for 2010 so far with each and every estate agent in and around the capital reporting very high demand for properties.
The number of properties available in the UK has hit an 18 month high with just short of 130,000 properties for sale in the UK. This brings the weekly average for the last two months to over 25,000 a week which is the longest run of properties coming onto the market since August 2008. The 25,000 a week figure was confirmed by Rightmove Plc which is the U.K.'s largest property website and a leader in its field.
Rightmove Plc, the largest Internet property company, has today confirmed that the average asking price for desirable properties in England and Wales increased by 2.6% in March. The average price now stands at around £235,500 which is a significant increase on the start of the year. It was interesting to see prices in London increase by just 1% in March indicating that the rest of the UK is beginning to catch up on the initial burst of interest seen in the London market.
Property tycoon Gerald Ronson has today criticised the UK government for what he believes is the creation of a two-tier Britain with rising unemployment outside of London having the potential to cause social unrest. It has long been known that the London economy can be very different to the wider UK economy and recent events have highlighted this fact. So why is Gerald Ronson concerned about the future?
It has been revealed that London's largest skyscraper, Tower 42, has been put up for sale by Blackrock and Hermes Real Estate. The asking price for London's largest skyscraper is in the region of £300 million and is one of a portfolio of property assets up for sale.
The Royal Institute of Chartered Surveyors has today revealed pressure on UK house prices as more and more people look to dispose of their properties ahead of the election. This is something of a surprise as many people had initially assumed homebuyers and sellers would hold off until the election was over but it appears that there is pressure as more properties come onto the market.
There is no doubt that the beginning of 2010 has seen some volatility in the UK property market with prices falling in February only to return to the growth path in March. Such is the volatility of these indicators that many experts are now discounting their strength and their usefulness in the current environment.
The average house in the UK is now valued at £168,521 after a return to growth in March after the falloff in February. The Halifax report shows that UK prices rose by 1.1% between February and March which was a welcome relief bearing in mind a surprising 1.6% fall in February. House prices have increased by 0.6% in the first quarter of 2010, compared to the final quarter of 2009, and while this is a significant reduction on the 3.6% increase between the third quarter and the fourth quarter of 2009 it is still worthy of mention.
