2013 foresees a weak and slow recovery in the UK economy, which is 3.0% smaller than 2008. 2012 was faced by the UK with a double dip recession wherein prices of properties and lands went down. Banks who feared having huge losses cut back on lending and raised deposits. Mortgage prices also continued to increase. This created a trickle-down effect where there became a decrease in the number of home buyers with a secure finance.
For the second half of 2013, economists expect that the market will slowly recover. Nevertheless, there will still be the delayed effects of the 2012 recession that will be felt all throughout the year.
Experts approve that for some parts of the country in the North, prices of properties will most probably dip to about four percent. Most homeowner are choosing to have property extensions instead of moving house, which means plenty of work for tradesmen. Just be certain that the tradement you hire has the require cscs card before they begin the work.
The private sector’s large companies and businesses are faced with low growth despite the competitiveness of business models and capital availability. Because there is no strong assurance in the recovery of UKs economy, businesses have resist undergoing expansions until property prices rise again. UK Chief Financial Officers (CFOs) are faced with finding the best strategies in protecting macroeconomic risks while still exploring new growth opportunities.
After 2013, experts, such as Tom Cann of BNP Paribas Bank, predict that by 2014, the economy will have then regained itself such that house prices will rise up to 8.8% by 2015.
Should you purchase a property this year?
This decrease in property prices is an advantage for home buyers for this year. They can grab the opportunity in looking for houses that have been on sale for at least six months since the original prices can be lowered down, with the right amount of haggling. In areas where large-scale road schemes will be put up in the latter part of 2013, buyers should try to purchase as early as possible before the market has adjusted.
For UK, as the experts have predicted, the market’s property prices will not remain low for the rest of the year. This is an advantage for sellers, yet a disadvantage for buyers. Which is why, the key rule for property buyers of the moment is to strike whilst the iron is hot and purchase properties in strategic areas as early as possible.
In answering the question on whether you should purchase a house or property at the moment, this all depends on what use you would have for the property. If you are planning on purchasing a property for your own home, this time will be the right time to do so. Otherwise, if you are planning to re-sell the property in the coming months, you may have to face long months of no one interested in buying. This will be as soon as the economy regains itself.
Nevertheless, it should be noted that due to the unstable economy of UK, as well as all other countries, you must be prepared for a series of increase and decrease in property prices.
As of July 2013, properties in strategic centres are starting to increase in prices yet again.