House prices across the UK are set to rise by seven per cent in 2014 as the government’s Help to Buy scheme continues to fuel the improving property market, a report has predicted.
The report released by property consultant Knight Frank has a particularly positive outlook on London property. The report said that London property prices will jump £76 each day next year.
The rest of the country is due to experience a rate of growth not seen since before the global economic downturn. The report said that the average house price in Britain will reach £185,835, a total price increase of £12,000.
According to worldpropertychannel.com, the property advice group warns that the market still faces some problems as home price growth has only just begun to outpace levels of inflation.
Liam Bailey, global head of residential research at Knight Frank, told telegraph.co.uk that the government’s Help to Buy scheme had a “dramatic effect” on the UK housing market by not only helping first time buyers to secure a home of their own, but also triggering an overall shift in the market.
Mr Bailey said: “Price growth is encouraging transactions, contributing to labour mobility, and first time buyers are able to access the market in a way they couldn’t even 12 months ago.”