Commenting on the figures, Tim Harvey, managing director of UK regulated mortgage brokers Offshoreonline.org said. "The UK housing market has produced some remarkable data over the past 12 months. Stock shortage was a common problem in 2009, with estate agents reporting fewer sellers. However, prices held up well in the most sought after areas, as demand remained, with the result that we saw headlines proclaiming pre credit crunch values being achieved."
Against this background of albeit localised solid demand, prices in the UK have started to edge upwards on a consistent basis. According to the Financial Times House Price Index, values rose by 0.7% in January, giving an annual improvement of 5.4%. Asking prices, as recorded by Rightmove.co.uk jumped by 3.2% in the same month. Tim Harvey adds, "Sellers are certainly showing signs of confidence and are coming back into the market. We have now had over 6 months of positive reports of house price growth across all of the major monitors in this market, with the Financial Times Index reporting 9 months of price growth. Inevitably, this is sending a message to sellers that prices are stabilising, so now is a good time to start to sell again after the turmoil of 2007 and early 2008."
Mortgage rates remained competitive after the Bank of England again kept UK base Rate on hold at 0.5%. This is leading to mortgage rates for expatriates buying in the UK as low as 2.99%, subject to deposit sizes.
Tim Harvey ends, "Expatriates earning in almost any foreign currency are now in a position to take advantage of the relative weakness of sterling to secure a good deal in the UK market. Despite recent volatility sterling is still weak on an historic perspective, which effectively gives buyers "winter sale" discount. With volumes of new homes now up, the choice is far wider for the buyer."
