Confidence in the growth of house prices has reached a 20-month high with 71 per cent believing that property values will continue to increase in 2007, according to research by Yorkshire Bank.
The new figure shows a drastic rise in the past 12 months as a year ago just over half (55 per cent) of buyers thought house prices would climb.
However buyers are still looking to haggle on properties to ensure they get a good deal.
More than a fifth (21 per cent) of buyers would make a low offer to start with, only raising it if necessary. That compares with only 12 per cent of keen buyers who would immediately offer over the asking price to get their perfect home.
A quarter of buyers are said to be looking for a property they can renovate and add value to.
Commenting on the growing trend, Gary Lumby, Yorkshire bank's head of retail, said: "Buyers who are now looking for properties they can do up are using this uncertainty to their advantage by trying their luck with a lower initial offer - and only raising it if necessary. Should these offers below the asking price be accepted by sellers then we may see prices levelling off."
The survey also highlighted that over three-quarters of those questioned do not intend on moving home, suggesting that the housing market is beginning to slow.
Showing posts with label UK House prices. Show all posts
Showing posts with label UK House prices. Show all posts
Monday, February 12, 2007
Friday, February 2, 2007
'Potter effect' drives up house prices
Property market experts are noticing a new trend in what is influencing the rise in house prices UK towns, which they are terming the "Potter-effect".
The effect was first seen in Alnwick, which following its starring role as the setting for Harry Potter’s adventures in The Philosopher's Stone, sent the price of homes in the small Northumberland town rising and boosted the local economy.
Alnwick house prices rose 51 per cent in 2001, the year of the film’s release, with a record number of properties changing hands – a total of 226.
However, housing market experts are predicting a similar effect from another Potter – Beatrix – particularly in Ambleside, Cumbria, where the famous author and illustrator lived.
The film of Beatrix Potter's life - Miss Potter - is tipped to give the area an immediate boost of around £5 million, economists predict, with tourists from all over the world visiting the area.
"I would expect to see demand for homes in Ambleside escalate over the next year, as investors in particular look to capitalise on increased tourism in the area," commented David Bexon , managing director of Email4Property.
"In fact, I would expect to see the number of people looking to buy second homes at least treble, with buyers drawn in by the picturesque countryside and the excellent investment opportunities.
"However, the smart investor will have already secured a property here, beating the crowds and placing themselves in an excellent position to profit from the imminent influx of tourists, before demand reaches a peak and inflated prices push properties out of their reach."
The effect was first seen in Alnwick, which following its starring role as the setting for Harry Potter’s adventures in The Philosopher's Stone, sent the price of homes in the small Northumberland town rising and boosted the local economy.
Alnwick house prices rose 51 per cent in 2001, the year of the film’s release, with a record number of properties changing hands – a total of 226.
However, housing market experts are predicting a similar effect from another Potter – Beatrix – particularly in Ambleside, Cumbria, where the famous author and illustrator lived.
The film of Beatrix Potter's life - Miss Potter - is tipped to give the area an immediate boost of around £5 million, economists predict, with tourists from all over the world visiting the area.
"I would expect to see demand for homes in Ambleside escalate over the next year, as investors in particular look to capitalise on increased tourism in the area," commented David Bexon , managing director of Email4Property.
"In fact, I would expect to see the number of people looking to buy second homes at least treble, with buyers drawn in by the picturesque countryside and the excellent investment opportunities.
"However, the smart investor will have already secured a property here, beating the crowds and placing themselves in an excellent position to profit from the imminent influx of tourists, before demand reaches a peak and inflated prices push properties out of their reach."
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