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UK Property Prices Remain Strong Amidst EU Vote Jitters

Posted by Aliza Xandria Arellano on Feb 15, 2016 12:40 PM EST
Salcombe Becomes The Most Expensive Coastal Town In The UK To Buy A House more big
SALCOMBE, ENGLAND - JUNE 01: Property is seen in the seaside town of Salcombe on June 1, 2015 in Devon, England. In a recent study by the Halifax the South Devon resort is now the most expensive seaside town, overtaking Sandbanks in Dorset, with average house prices in the second-home hotspot now reaching £672,874, with prices in the town seeing a massive 69 percent rise over the past decade. (Photo : Matt Cardy/Getty Images)

It appears that amidst the upcoming EU vote jitters, property prices in the UK remain strong and resilient.

According to the latest research done by the real estate firm Knight Frank, as reported by PropertyWire, the average UK house values rose 0.3 percent for the month of January, and were still going up 4.4 percent on a yearly basis, but at the same time, remained moderate.

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The same report added, "Prime central London prices rose by 0.1 percent last month to take annual growth to 1.2 percent while prime central London rents dipped by 0.3 percent. The data also shows price growth for prime property in some regional hubs continues to outperform the wider prime country house market."

Meanwhile, Grainne Gilmore, the Head of UK Residential Research at Knight Frank, indicated that the growing interest rates remain unchecked by the Bank of England for the 83rd consecutive month.

Grainne Gilmore explained by saying, "The data released by the Bank when announcing its decision has led economists and markets to change their expectations about when rates may start to rise. Whereas many had forecast a rise around the middle of the year, the verdict is now that rates are placed on hold until the final quarter of the year, if not 2018."

Furthermore, in a post from Gaspark, the households expect values to rise this year, based on the latest House Price Sentiment Index (HPSI) from Knight Frank and Markit Economics. Also, the report added that certain urban markets outperformed this growth, such as in Cheltenham and Bristol with 6.6 percent, and 4.5 percent in Bath during the year, while the prime prices in Oxford rose to 1.3 percent.

Gilmore added on to say, "This change was prompted by the Bank's forecasts, showing muted inflation and wage growth in the coming years as well as a downgrade in forecasting GDP growth. The central bank now expects 2.2 percent GDP growth this year, instead of 2.5 percent. The slower growth is attributed to global economic conditions, not least the effect lower oil prices are having on various economies around the world."

TAG:EU, UK, London
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