RLA reports that Britain saw a 3% increase in residential property values during the first half of 2010, but real estate prices rose most significantly in southern England, according to figures released by Nationwide. Compared to a year ago, residential property rates are up by 8.9%. The increase in prices, however, slowed to 0.1% in June and Nationwide believes that rates may fall later in the year.
Southern England performed better than other regions, with the average price of a residential property rising by 12.5% over the past 12 months. During the second quarter, property rates in the South-West increased by 3%, although separate figures released by the Land Registry suggest that rates fell slightly (0.2%) in June. London, however, continued to lead the country in terms of overall value increases. London-area residential property prices increased by 13.2% since June 2009. But not all parts of the UK saw significant rises in values. Both Scotland and Wales underperformed compared to England’s property market and Nationwide found that rates in Northern Ireland actually declined.
The average price of a home in Britain now stands at £170,111, but the inflation in real estate prices may decrease due to a rise in the supply of properties for sale. Martin Gahbauer, a senior economist affiliated with Nationwide, noted that the new government decision to eliminate Home Information Packs may have helped spark the rise in supply of properties. At the same time, demand appears to remain stable and this may explain why prices are rising at a slower rate.
Tuesday, 6 July 2010
Residential Property Values Increase Most in London and southern England
