A recent announcement by the Centre for Economics and Business Research (CEBR) seemed to hold some good news for UK estate agents and their vendors. Economists at the centre announced in early 2012 that they expect house prices to increase by 15 per cent by 2017.
Such a figure has not just been plucked from thin air; there are a number of factors that have been taken into consideration. Largely, the influence will be the continuing economic climate. This will influence the number of properties being placed on the market and it is worth understanding why this will be.
Whilst the number of instructions local estate agents have will fall, and thereby boost prices, this is largely because the number of buyers will fall. Though things have and will continue to improve steadily, securing a mortgage will remain challenging; notably for first time buyers. As such, many not pressed into selling to finance their own move will choose to rent.
It is a decision that makes a lot of sense. A 15 per cent pay rise sounds significant on the face of it, but in actuality only represents a 2.8 per cent increase each year. The rental market however is thriving, with rental values having increased by 30 per cent or more in some areas in just three years.
With mortgages harder to come by, many people are having to take the rented option. However, perhaps more tellingly, many people are taking the rented route as a lifestyle option, preferring the freedom it gives them to move around the country and travel further afield for their career.
If letting out a property, it is important to work with an agent that has the right experience. Reading the estate agent reviews from current landlords at MeetMyAgent can help decide which is the best firm to use, whilst the advice and renting guides we have provides other essential information.
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