Home prices in the United Kingdom climbed 5.9 percent in 2009, according to a report from the Nationwide Building Society.
The average price of a home in the UK at year-end was $257,105 (£162,103), an 8.9 percent rebound from the lowest point in February 2009, according to Martin Gahbauer, Nationwide’s chief economist.
The re-entry of cash rich buyers into the market coincided with an extremely low supply of property available for sale. Low interest rates limited the number of distressed sales and a significant number of homeowners decided to offer their properties for rent rather than sale. “This restriction in supply meant that even a relatively modest pick-up in demand was able to put upward pressure on house prices,” Gahbauer said.
“Few could have foreseen this development at the start of the year, when the near term price trend was still pointing to a repeat of the double digit annual decline experienced in 2008,” Gahbauer said. Demand rose at the start of 2009 as the government provided land stamp tax relief to borrowers and as interest rates hit record lows.
Prices in the UK are continuing a recent trend in steady month-on-month growth. Looking ahead to 2010, Gahbauer anticipates that the Bank of England will not raise interest rates until at least the second half of 2010.
Brian Kinkade is a broker and team lead with Cherry Creek Professionals Realty, a full service Denver real estate firm. His team specializes in Denver equestrian properties, luxury homes and International sales. Brian invites you to visit his website for more information.
