Thankfully, Britain has emerged from the longest recession in modern history, but the economy grew by only 0.1% between October and December- way below the expected 0.4% .The likelihood is that the bank of England will keep interest rates at an historic low of 0.5% at least until late this year.
It would appear that the public are only expecting modest rises in house prices this year, after both Halifax and Nationwide reported a near 6pc increase in house prices in 2009, following sharp falls in the early part of the downturn. However, Rightmove said that the shift in the public’s expectations was significant because positive price sentiment played a major role in any housing market recovery and was an encouraging indication of how prices might perform.
Confidence in the housing market has been boosted by rising prices, and by record low interest rates which have pushed up disposable incomes in many cases. I think that we will see transaction levels remaining similar to 2009 for the best part of this year with steady increase in house prices. The latter part of this year will see additional activity with more mortgage lenders and more mortgage products coming onto the market as lenders once again look to capitalise on a stable property market that is once again increasing in value.
Lloyd Davies
No comments:
Post a Comment