The UK house prices rose in December and thus one of the best years for the real estate market ended on an optimistic note. Nonetheless, capping the best year for the property market since 2006, the real estate observation shows that the country is having good times. The news has been affirmed by Nationwide Building Society.
Also, there are reports that say that the value of houses climbed 1.4 percent from November to an average of 175,826 pounds ($289,000), the highest since April 2008. Also, there was an immense growth wherein prices increased 8.4 percent in 2013. However, it was the capital city London which has been receiving a lot of investment and value appreciation.
According to the market observers who have putting a lot of attention in the UK real estate market, the prices are being driven higher as the supply of new homes fails to keep pace with an increase in demand. A major reason behind the increased demand of the houses is being fueled by a strengthening economy and government support.
Additionally, the Bank of England is encouraging mortgage approvals. In fact, it increased mortgage approvals in November to the highest level in almost six years and that might have been a reason behind the upward movement in the housing sector in the country. Earlier there were a lot of concerns coming from the market observers that the UK may have an overheated housing market.
It is to be noted that a large part of the pickup in the housing market can be attributed to further improvements in the labor market and the brighter economic outlook. Additionally, the demand for houses is gaining pace as there have been a lot of policy measures which are supporting the new house buyers, the latest being that buyers are able to get mortgages approved without much hassle.
Data show that the UK mortgage approvals increased to 69,700 in November from 67,701 the previous month. Thus, this is not only the highest since January 2008, but also sending the signals what buyers require when they are buying a new home.
Thus, it is not just about affordability but also about the sanctions of mortgage that is helping buyers get new houses. Then there is the ultra-low level of interest rates which is helping even new buyers with low affordability to chase their dreams to own a house.
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