UK house price predictions 2013

The number 13 has traditionally been associated with bad luck, and the effects of the global recession that struck markets at the end of 2008 remain tangible in many areas, not least the housing industry. However, the UK house price predictions for 2013 are not all doom and gloom. It is fair to say there are both good and bad portents for the coming year.

Mixed messages about house prices in 2013

According to Grainne Gilmore, who heads research at Knight Frank, one of the UK’s leading independent estate agents, 2013 prices are likely to experience "a one percent decline before growth returns". This pessimistic outlook is shared by many, with other experts warning that in the north of England and Scotland, this price dip is likely to be even more acute, dropping to 4%.

While this is not good for anyone trying to sell their property north of the fabled Watford Gap, it does mean that there are opportunities for the shrewder investor looking to snap up bargains in 2013. Coinciding with the New Year, mortgage lenders such as Halifax have introduced a raft of new products, as well as reducing interest rates on existing mortgages. This will help to inject some stability into the housing market after several years of choppy waters, particularly for first-time house buyers.

What UK house price predictions for 2013 also reveal is the continuing tiered structure that exists with house values. If property prices from Manchester to Glasgow are continuing to decline, the same cannot be said for London and the South-East. The top-end of the market remains impervious to the effects of the recession that have impacted elsewhere. This year the numbers of property millionaires is set to increase. In the London borough of Kensington the average house is now worth over £2 million.

Other factors impacting house prices

2013 will see the building of 37 new stations along the lone of the Crossrail high-speed rail link between Maidenhead and the Thames Estuary. As these create commuterhotspots, the housing market will be given a boost. Other rail schemes are planned for Edinburgh, Kent and Cambridgeshire. The consensus for UK house price predictions for 2013 is they won’t stay low for ever, although buyers remain in the driving seat at present.

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