Producing a property forecast in any time period is hard enough. It becomes near impossible when not only done in such an uncertain financial climate as the one in which we reside in, but when the nature of the predicted trends, are short term. Nevertheless, a forecast is all we can go by and one must therefore be generated in order to aid our cause. Here is a property forecast for the latter part of 2012.
We currently rest in the midst of a market filled with economic fears, rising unemployment and hardships acquiring mortgages.
Will things get better or worse?
It seems for buyers, things will get better. House prices look set to continue falling. This doesn’t mean you should jump to buying properties within the latter half of the year however, as this downward trend will probably continue for a couple years.
Regarding specific regions, London and the South East will continue to escape any the distress suffered throughout the rest of the country. However, that is not to say that things will be completely rosy there, as economic movement may very well stall thereabouts. On the note of the capital, prices in prime central London will slip by about 1 percent between now and the end of the year. Those selling properties just outside the capital will experience greater gains than those within. This is down to good leisure and retail facilities, transport links and high quality schools. Gains exceeding 5 percent are to be expected.
Opposite the South East, things will continue to be pretty sweet for buyers and rather grim for sellers. Expect falls in price of around 5 or 6 percent.
Perhaps the difference between the South East and South West is a clear indication of the great variances in house price movement across the United Kingdom. This is even evident now, and one can compare property prices between the two regions for proof.
All in all, as previously mentioned – even though interest prices will remain low throughout the UK – it is advisable to not buy just yet. Wait until 2014 and then buy. Nevertheless for those desperate to acquire a property of their own, now’s still a better time, than a year or two ago. Those living in London will of course experience the most difficulties buying. For them it is more strongly suggested to focus on renting for now – and doing so in the home counties where things are much cheaper.
Michael Edwards – Freelance Writer