The news for the UK’s housing market has been increasingly bright recently and investment from overseas buyers in London property is at the forefront of this upturn. According to The Daily Mail, the prices of UK houses were up to a new high in May, overtaking the previous record set before the recession and all its implications for the nation’s economy. Property prices have fallen in only one of the last 18 months and the average cost of a home in England and Wales is now £233,061.
Experts say that the rise has been driven by the improved fortunes for the London property sector and the weakened state of the pound has been cited as a key reason for foreign investors’ interest. Buyers from abroad have been attracted to properties in the more privileged areas of the capital and this has heightened the overall outlook for the country as a result.
This time last year, the price of the average home in the UK was £226,936, over £6,000 less than it is at present. This is undoubtedly extremely welcome news for the housing sector and David Newnes, LSL Property Services director, said: “Even taking inflation into account, the record high price is symbolic of the significant improvement in the housing market over the past year.”
Newnes also pointed to the greater level of mortgage availability as a principle factor in a boost for the industry that has taken the average cost of a UK home above the February 2008 high of £231,709.