The Importance of Demand
Featured in online publications such as Yahoo Finance, Simon Morris is an independent property specialist. In this capacity, Morris uses his expert knowledge of sectors such as the residential market to advise UK property investment funds on how to maximise revenue on their property portfolios.
Simon’s experience has shown him that it’s impossible to accrue revenue on even the most diversified of property portfolios without demand. That’s why it’s so relevant that house prices are set to rise in 2015; because this rise is set to be fuelled by a staggering increase in demand.
A Seven Year High for First Time Buyers
According to the International Business Times, new data suggests that house prices will increase this year due to the fact that the number of first time buyers has hit a seven-year high. Figures from Halifax suggest that the number of people buying property for the first time rose 22% in 2014 when compared with the previous year; 326,500 first time buyers.
Halifax’s mortgages director Craig McKinlay commented on the release of these figures. McKinlay argued that “improving economic conditions and rising employment levels have boosted confidence among those thinking about getting on to the housing ladder for the first time.”
“Momentum May Return to the UK Housing Market.”
Meanwhile, the latest figures from the Office for National Statistics (ONS) suggests that the average house price in the UK stood at £271,000 at the end of 2014.
This is lower than the market’s 2014 peak. The average UK house price hit £274,000 in August, before falling slightly to £273,000 in September. Circumstances suggest that more first time buyers will take to the market, raising values in 2015. Bank of England Governor Mark Carney summed this up eloquently, suggesting that “momentum may return to the UK housing market after the stamp duty cut and the fall in mortgage rates.”
The Right Time to Get Into the Market
In other words, house prices are set to rise in the UK throughout 2015 because circumstances will persuade more first time buyers that it’s the right time to enter the housing market. That rise in demand suggests that the UK residential market could prove lucrative for UK property investment funds throughout 2015.