Recent data released from Economists has been revised up to show expected higher capital gains from UK property investment. The expected increase in residential house prices has surprised many economists and property professionals. Many believe the increase in gross mortgage lending coupled with a low supply of suitable property is the main driving forcing behind increased house prices.
The lack of new build properties will also have a impact on prices as many of the house builders have scaled down new build developments in an attempt to cope with tighter lending criteria, as bankers and investors look for better yields on their development funding.