Cities led the way during house price rises of 2014

Feb. 11, 2015 - PRLog -- A report published by Hometrack at the end of 2014 claimed that, for the first time in a decade, the UK's top 20 cities all registered house price growth of more than five per cent. Birmingham - often classed as the country's second capital city - is one of the names included in the report, with an estimated 6% house price growth during 2014. The report goes on say that the average house price in Birmingham now stands at £133,700.

Winkworth Midlands estate agents will be interested to see if there is any truth in a comment made by Richard Donnell, Hometrack's Research Director, who was quoted saying: "For the first time since the financial crisis, an improved economic outlook has seen house prices in cities outside of the south of England rise off a low base. We could well see monthly house price growth in London slipping below that of some of the major cities outside of the south east."

So what do the next 12 months hold for the city? Birmingham's imminent housing market will be influenced by purchaser confidence and interest rates, say Midlands estate agents. If interest rates stay low, mortgage rates and bank 'swap rates' are likely to do the same, creating a competitive and affordable mortgage market. Already rates are dropping below 2% on some home loans, with incredible fixed rate deals allowing buyers to lock in to some financial security.

The Government's continuing Help to Buy initiatives - aimed at both buyers of new build properties and purchasers with smaller deposits - will continue to run during 2015 and will plug any gaps not covered by the open mortgage market.

Winkworth Midlands estate agents (http://www.winkworth.co.uk/regions/midlands) agree with their country-wide counterparts that house prices are not expected to rise at any unsustainable rate in the near future, with any increases staying in single digits, especially with the general election ahead in May. Once a new Government is in power, or the same party is re-elected, the home moving fraternity will wait to see if new legislation will impact the buying process or letting market before they make a move. The suggestion of a mansion tax or the scrapping of tenant fees will fuel the 'freeze' of the property market until the full picture is known, with a steady stream of serious home movers active in the market, rather than frenzied activity.

One long-term project that will continue to impact the Birmingham and wider Midlands property market is the HS2 high speed rail line that, if built, would slash rail commuter times from the city to London to 50 minutes. Nothing is set in stone and it is thought a change in Government could radically alter the plan or see it scrapped altogether.