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Property Prices Predicted to Grow by 3% Next Year, but with Regional Variations
Property prices have been predicted to grow by up to 3% next year, but of course there will be regional variations with the North-South divide expected to widen even further. Major concerns remain over the economy, with worries about unemployment being top of the list. The supply of new property is also expected to remain low, and could force rents to rise by several percent, especially as the mortgage market is likely to face continued constraints in the wake of the Eurozone crisis.
Experts are predicting property prices will remain fairly flat, with the exception being London and commuter hotspots in the south-east. Popular residential areas supported by good infrastructure should also see continued demand, while areas that are more reliant on the public sector or on manufacturing are likely to continue to struggle, with transaction levels predicted to decrease. While property prices had been forecast to increase by 5% this year, this has now been revised downwards to just 2% due to the increase in public sector job losses and the Eurozone crisis. The market should benefit slightly from the latest round of quantitative easing, but the real worry remains the crisis in Europe as it's far too soon to predict the long-term impact.
One sector that will continue to see high levels of activity is the buy to let sector, with a considerable percentage of landlords looking to increase their portfolio. It's also been predicted that many people will choose to become landlords for the first time as they see buy to let property as generating a decent income. With rents being predicted to increase next year it looks like being another good year for landlords and letting agents in Nottingham, even though capital growth could remain relatively modest.