The Nationwide building society announced today somewhat unexpectedly that the property market in England and Wales is now as rampant as it was before the Crash! They reported 10. 5% annual house price inflation which is as high as it was in June 2007. Read more on the BBC web site.
Property market volumes (the number of properties being sold each week) are still fairly modest and these growth rates are expected to send a lot of people out looking for Estate Agents and Home Information Packs!
Where property prices go from here is anyone’s guess. The Election, the Greek Euro Crisis, the UK Deficit and Debt, Hung Parliaments and Mortgage Availability are all likely to depress the property market. Whereas the cheap Pound pulling in overseas investors and of course the long-term difference between domestic supply and demand (estimated at 3M to 4M properties by some) tend to keep prices, if not volumes, high.