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The South West Specialists

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Residential Sector Update

The Royal Institution of Chartered Surveyors have recently estimated that house prices in the UK will see an increase of 8% over the course of next year, caused by the continued imbalance between demand and supply.


What is more positive, in the sense that it implies a more sustainable improvement in market conditions, is that the number of transactions should also see a further increase, moving up to 1.2m from 1.05m in 2013).


Anthony Eke from property consultants Vickery Holman comments: “It is certainly refreshing to start a year with a positive outlook following the difficulties of the last few.  We are witnessing renewed activity and interest within both the commercial and development sectors.


Housing starts last year increased by 20% providing a much needed boost to the construction industry.  However, we are already hearing developers complain over potential shortages of both labour and materials which may constrict supply in the short and medium terms, meaning continued house price growth.


There is a slight note of caution, that whilst the picture is improving the growth is disproportionate across the country.  According to Land Registry, the Greater London area has witnessed a 9.33% increase in the average price last year while the South West’s growth has only been 2.12%, which has remained below the rate of build cost inflation. It is therefore vital that any land owner our developer ensure they are getting the right advice to progress a scheme through planning.”


For more information please contact Anthony Eke on 01752 273834 or aeke@vickeryholman.com