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UK Residential Values Set for 12% Rise in 2003

LONDON-FPDSavills Residential Research Department predicts that average UK house prices are set to grow by 12% during the next 12 months. Growth in the prime UK housing markets will be much weaker with capital values in prime Central London expected to rise by just 4% over 2003.

By Charlie Jacoby | Updated on December 31, 2002

LONDON-Look for a 12% hike in property prices across the UK next year, says estate agent FPDSavills. According to Richard Donnell, head of FPDSavills’ residential research department the modest slowdown in growth over 2002 reflects a ‘conflict between high levels of affordability driving high house price growth in the northern regions and low levels of affordability in London and the South East which is leading to much slower growth in house prices. In the last few years it has been the other way around.’

Donnell believes that it is important to understand that the high levels of house price growth in recent years have been mostly a result of the significant fall in interest rates. ‘The downward shift in interest rates from an average 11.5% over the 1980′s to an average of 5.5% over the 1990′s has given households a huge boost to spending power when it comes to buying a house.’

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