UK House Prices Situation: Continued growth in most areas of the UK

UK House Prices Forecast: Conflicting forecasts for the next 1-2 years

Top Economist Forecasts Sharp Fall in Prices

David Miles, a former adviser to Gordon Brown and the Chief UK Economist for investment bank Morgan Stanley has published a report suggesting that there will be a sharp fall in prices at some point in the next 1-2 years.

He believes that more than half of house prices inflation in recent years has been driven by speculation that prices will continue to rise at rates significantly above inflation – an unsound long-term proposition - but said it was impossible to predict exactly when such a fall would occur.

Equity Release – Majority Funds Home Improvement

Equity release mortgages and loans have become increasingly popular in recent years, but there has been some concern that relatively few people were using their equity to fund home improvements, and were spending it on luxuries such as cars and holidays instead.

A new government survey has found that 56% of borrowers who released equity did so to fund home improvements – hopefully increasing the value of their home and offsetting their increased debt.

Locations That Pay – Why Some Homes Carry a Premium

Wherever you are in the country, it seems buyers will pay extra to live in certain locations. Good schools, mainline railway stations, motorways and countryside or park views all play a part in adding value to nearby properties.

A survey by Haart estate agents has revealed some surprising differences in prices between homes with desirable extras and average prices:

• Mainline railway or underground station - £20,000
• Well-ranked state school - £18,000
• Proximity to motorway - £15,000
• Countryside or park location - £15,000

Buyers looking to cash in on the benefits of a chosen location should be careful, however. School catchment areas can change, leaving you in a different, less-desirable catchment area, and the introduction of new transport links too close to a property can also damage its value.