Following on from the news that the UK economy had returned to growth with a 1% rise, the Nationwide has released its figures showing that house prices also went up in the month of October, by 0.6%
This is a rise that has come after 3 months of decline and must be welcome news to all those in the property sector. It also further illustrates that the housing market has been stable for the last 12 months, with no major gains or falls in that period.
Although the economy grew last quarter a significant factor was the Olympics and overall we are still some way behind 2008 figures. Households seem at the moment to be more concerned with jobs and saving than spending, at present, and so challenges for continued growth remain. With the cost of food, utilities and fuel rising, spending power is being hard hit and that will translate into further barriers to an overall upturn in the housing market.
London continues to be the best area for property with parts showing heightened competition and more being sold under sealed bids – which can result in sales above asking prices.
The rest of the UK has seen for the last 12 months or so, a market which has bumped along without, for the most part, major rises or falls in prices.
Industry experts seem to agree that it is very difficult to say where prices will go in the next 12 months as the market seems fragile at the moment, with some believing prices will remain stagnant while others point to further falls to come.
The construction sector saw another fall in the last quarter which will also be of concern to the general health of the economy, with many predicting that a triple dip recession could be on the cards unless help is given to the ailing industry.
Here at Richmond Securities we are still committed to lending into building projects that meet our criteria. We are flexible and give service that few, if any can rival, with direct access to the decision maker.
Our funding is not restricted to the South, we are currently funding projects in the Midlands and North as well as the South coast and London regions.
If you would like to speak to us regarding your next development finance requirement we will be more than happy to talk: 01482 879 906.