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UK Property Research Continues to Contradict

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Everyday I read many different news articles concerning UK property and each one appears to contradict the other. 

The purpose of me writing this particular blog is not necessarily to make things clearer about which ones are wrong or right, but merely to have a rant. I am talking about the amount of reports, research, statistics and analytics presented to us practically hourly by the media and every one is from some sort of reliable source – well they can’t all be right!

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What prompted me to write this was the latest property investment UK black spots analysis released by Home.co.uk . The sales and lettings property search company has just revealed their top 20 worst performing areas list for the last year.

Prime central London suburbs were top of their list showing Belgravia down 7.6 per cent, Soho 6.8 per cent and Westminster 5.2 per cent, occupying some of the prime positions. 

Company director Doug Shephard explains: “Prices soared in central London post  financial crisis as foreign investors sought safe haven investments. Such was the demand for this type of premium property that prices overheated, reaching a peak last year, and are now in the throes of the painful process of market correction.”

This supports property specialists Strutt and Parker’s recent data for the last quarter (Q3) claiming there are ‘further signs of adjustment for the Prime Central London (PCL) property market.’

I am sure that most home owners and renters across the UK will not feel much sympathy for these particular locations as they have enjoyed such massive growth only recently. But can this now spark legitimate fears that the rest of the UK may experience deflating property prices also? After all, London and the South East always appears to lead the way whilst the rest simply follow.

But how has everything changed in just a few weeks? Statistical Bulletin Office for National Statistics House Price Index, August 2014 reported that, “UK house prices increased by 11.7% in the year to August 2014. House prices are increasing strongly across the UK, with prices in London again showing the highest growth.”

Just over 2 weeks ago, the UK’s largest property portal Rightmove alongside Oxford Economics experts, predicted that UK house prices will rocket 30 per cent within the next 5 years. Their research led them to forecast Southampton, the largest city in the county of Hampshire, will soar by a staggering 43 per cent.

The report also anticipates that Brighton and Luton will increase by similar amounts. It says that  ‘home counties and outer boroughs will benefit from the ripple effect of a year of strongly rising prices in London’. So what now barely 2 weeks after? 

Will London’s ripple effect snowball onto the rest of the UK and help topple recent expectations or is there a longer term scenario we should be looking at?

At the end of last week Hometrack published their report report showing increasing signs of rising prices with Cambridge leading the way.

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Last month the Office of National Statistics announced that six regions in the UK were finally seeing their average property reach higher prices than they were before the financial crisis about 7 years previously.

The research revealed that the regions involved were the East Midlands, West Midlands, the South West of England, the East of England, the South East of England and of course London.

So with all this research, reporting and regular information being fed through to us are we any the wiser? I’d like to hope so but who knows!

About the author

David Griffin David Griffin trained as a graphic designer and now helps PaydayLoan123 with social media. He is a born and bred Londoner who has recently moved out of the capital and is probably missing it a little too much. He enjoys fishing, playing golf and working out at the gym, when he feels energetic enough!

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