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"Mixed" outlook for UK residential market


A confluence of numerous economic factors has led to a mixed outlook for the residential property sector in the UK, according to Knight Frank.

The property consultancy recently released its November 2014 UK Residential Market Update, which found that on the plus side, the UK's economy is recovering. In fact, it has been performing rather well recently - the 3.1 per cent annual growth forecast for this year will make the UK the best performing G7 country with regards to output, Knight Frank revealed.

This has led to some favourable results in the local residential property sector. House prices increased by 0.5 per cent in October, with the annual growth rate at 9 per cent. While prices in central prime London showed no signs of going up last month, growth still remained at a positive 6.5 per cent year on year.

In addition, Knight Frank revealed that while rents in the prime markets declined by 0.8 per cent in the third quarter of this year, the annual growth rate edged back into positive territory at 0.1 per cent.

With residential property values staying high, property investors in the UK will be considering their chances as they aim to take action in the market. These professionals can take advantage of the latest property valuation software to ensure their decisions are as well-informed as possible.

But is there anything those in the property industry should be aware of in the coming months? In its report, Knight Frank warned that the upcoming general election, and the political uncertainty that is bound to come with it, could "[weigh] on property price growth".

Additionally, the potential emergence of a "mansion tax" could scupper activity, Knight Frank revealed. With a lot on the horizon over the next year, the residential property market in the UK is likely to be closely watched.

Date Published: 19 Nov 2014
Category: News

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