Throughout 2014 there was rarely a day when the UK’s property market didn’t make headlines.
From rising property prices to rumours of a London property ‘bubble’, from Stamp Duty reforms to the imminent rise in interest rates, the UK’s property market has been a hot topic throughout 2014.
As the year draws to a close, we look back over 2014 and discuss the performance on the UK’s residential and commercial property markets.
The residential market…
Despite the fact that property prices in the UK started to cool towards the end of the year, the overall performance of the sector was strong throughout 2014.
According to Acadata index in November, property prices increased on average by 0.8% across England and Wales.
For the first time ever, the average UK house price reached £280,000, marking an 11.3% annual rise.
The buy-to-let sector also had an impressive year, with the latest Home Let Index showing that rental prices increase by 8.7% month-on-month in November. When compared to the same month in the previous year, rental prices have increased by a staggering 11.7%.
Many landlords and investors have a confident outlook for the market in 2015 and with at least 7 tenants chasing each available rental property (Sequence), demand for rental property does not seem to be slowing down.
The commercial market…
The UK’s commercial property market has had a hard time since the economic downturn however 2014 was a game changer for the sector.
New research from Lloyds Bank shows that up until November, commercial property returns sat at 20.1%, propelling the sector ahead of last year’s best asset, equities, where returns reached 12.8% in 2014.
Overall it has been a good year for both the UK’s commercial and residential property sectors. According to LSL Property Services, 2014 has been the best performing 12 months since 2005.
The country’s continual economic recovery and a positive sentiment feeding demand has paved the way for 2015 to be another good year for the markets.
This article has been provided by Experience Invest – a leading UK property investment company. For more current news articles and trends visit http://experienceinvest.com/news/