With the U.K. economy in recovery, a housing boom might be around the corner. According to a report by Rightmove PLC, an online real estate agency, home prices hit five-year-highs in February 2013. Sellers have raised prices of properties in sight of the approaching boom.
In the report, it was observed that home prices had jumped 2.8 percent from the figures of January 2013. The figures also recorded a 1.1 percent hike compared to the percentage of 2012. Asking rates in London increased by 0.7 percent from January and 8.4 percent over the year.
Prices started to rise from Christmas time in December 2012 when a host of new properties were listed for sale. The real estate market is slowly picking up speed with more number of new sellers and buyers entering the market. January was observed to be the busiest housing trading month as more agencies reported a hike in transactions.
Home prices rose considerably in the areas across Wales and England. Prices in the North West areas rose to 5.2 percent from January 2013, while the South East region witnessed a small surge of 0.4 percent.
The growth has kick-started due to the various lending and mortgage schemes introduced by the government and the financial institutions of the country. In August 2012, The Bank of England launched the Funding for Lending scheme, which was aimed at loaning more capital to business and households. Nationwide also broadened mortgage rates to encourage first-time home buyers.
However, the report suggested that it was too early to jump to conclusions as mortgage availability was still low in the country.
"While market activity remains patchy across locations and property type, some agents are reporting their busiest new year since the onset of the credit-crunch. While encouraging, it's far too early to pop the champagne corks as certain sectors will remain on ice until the return of wider-spread mortgage availability." Miles Shipside, market analyst at Rightmove, said in the report.