RICS Forecast 8% Property Price Increase

Monday, December 30, 2013
UK Property Prices Expected To Jump 8% In 2014

UK Property Prices Expected To Jump 8% In 2014

UK Property Prices Forecast To Jump 8% In 2014

According to the Royal Institute of Chartered Surveyors (RICS) Annual Housing Market Forecast for 2014, residential property prices in the UK could see an increase of 8% over the year, while the cost of renting property in the UK private rented sector (PRS) should rise by a further 2%.

The forecasted growth in UK property prices is being driven by an acute imbalance between rapidly increasing buyer demand and sluggish property supply with new instructions to estate agents still very close to stagnating. 

Although there are still significant challenges to achieving a sustainable economic recovery in 2014, the year may see the promising pick-up in activity gather pace and this will be reflected in the national property market. This means that 2014 could be a very good year for property investment in the UK and expanding portfolio landlords and property investors are taking advantage of some great Buy-To-Let mortgages and Buy-To-Let re-mortgage options.In addition to rising property prices, the number of property sales transactions should also see a further increase, moving up from 1.05 Million in 2013 to 1.2 Million in 2014, however total property sales in 2006 were 1.67 Million, before the property market crash, so there is still some way to go yet. 

All parts of the UK should see property prices rise in 2014, with the biggest increases in London, where the cost of property is expected to jump by around 11%, although the impact of the recently announced increase in Capital Gains Tax (CGT) for overseas vendors remains uncertain.

The North East of England and many areas in Northern Ireland are expected to experience the lowest property price rises with values increasing by 5% and 4% respectively and with property prices already low in these areas, it really could be boom time for Buy-To-let property investors.

Peter Bolton King, RICS Global Residential Director, commented: “The cost of a house is now picking-up right across the country and next year should see more of the same. We expect all areas of the country to see prices increase with London, predictably, recording the biggest rises. The improving economic picture aside, this is largely down to the fact that buyer numbers considerably outweigh the amount of available properties on the market. While the number of new properties being built is now on the rise, it still won’t be anywhere near enough to meet demand and we expect the problem of insufficient housing stock to be the main driver behind property price increases over the next twelve months.” 

2014 UK Property Market At A Glance

Predicted UK Property Price Growth By Region

  • UK – Overall – 8%
  • London - 11%
  • East of England – 10%
  • East Midlands - 10%
  • North West – 7%
  • Scotland  – 7%
  • South East - 7%
  • South West -7%
  • Wales - 7%
  • West Midlands  – 7%
  • Yorkshire and Humberside – 7%
  • North East – 5%
  • Northern Ireland – 4%

• Cost of renting in UK PRS expected to grow by 2%
• Property transactions expected to increase to 1.2 Million
• New property starts to reach 150,000 in England

This was written by Mike Clarke. Posted on at 12:42 pm. Filed under Buy To Let. Tagged , , , , , , , , , , , , . Bookmark the permalink. Follow comments here with the RSS feed. Both comments and trackbacks are currently closed.