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Bonus for Homeowners

Tuesday, 18th February 2014

Categories: Property Prices Sales

Author: Kris White

If your credit card is still reeling from the Christmas shopping bonanza, you’ll be relieved to hear that while you were out spending, your house was earning you money. According to research carried out by Nationwide building society, the average house increased by a respectable 1.4% in December 2013. While experts are issuing stark warnings that a housing bubble is inevitable, it seems that homeowners can sit back and relax while their properties provide the household income.

Although all 13 British regions enjoyed property price rises over the period of October to December 2013, it was London and the south east that experienced the biggest growth figures. In fact, London property owners were sitting on a 13% value increase in their homes by the end of the year. The figures certainly point towards a bubble but a general level of optimism and signs of continued economic recovery have undoubtedly fuelled the incredible price rises over the past year. With these factors showing no signs of abating, it seems there’s no reason why property prices shouldn’t continue to rise.

Of course, this puts even greater strain on first-time buyers who are still trying to keep their savings on track with the exponential growth of the market – a difficult state to achieve when interest rates remain incredibly low. And with housing stock in short supply and so sought after, competition remains fierce for those properties that do come on the market. Factors such as family space, transport links, amenities and school catchment areas are seeing asking prices exceeded and houses going under offer in a matter of days.

It remains to be seen exactly what 2014 will bring but it’s a fairly safe assumption that prices will continue to rise in line with supply and demand and lucky homeowners in sought-after postcodes will reap the rewards when their properties are launched onto an eagerly waiting marketplace.