House prices in the UK continue to defy the broader investment markets, latest data reveals.

It revealed the average property price rose *0.2% to £220,385, although 0.5% lower in value over the year, with London leading the resistance with average values +3.1% higher year-on-year to December.

Wales also saw annual growth but, other places in the UK remained flat.

The closing months of 2011 indicate marginal overall increase in property values, supporting the view that even during economic turmoil, property maintains remarkable resilience. Values rose 0.7% during H2/11.

 

High inflation with static prices has made Below Market Value property purchase, from a safe source, more and more attractive.

Though tradition sales of buy-to-live residential property dropped slightly 2011 over 2010, the last 5-months of last year saw higher sales activity over 2010. This was boosted by the increasing number of buyers eager to make the most of increasingly better mortgages.

2012 may be another challenging year as the global economy remains fragile however, more lenders continue to return to the market with beter and better BTL deals. Property investment loans, it seems, is a safer risk than residential.

The first-time buyer holiday on Stamp Duty ends in April so, they will have to find between £1,250-2,500 more for a purchase property between £125,-250,000.

 

This may cause a bit of a rush in the first quarter of this year as wanna-be homeowners scramble for the current tax saving however, FTB's need to remember they can already buy a £165,000 discounted property for under the stamp duty threshold, not only saving £1,650 tax but more than £40,000 against the properties open market value.

The Government's mortgage insurance scheme for NEW-build, aimed at shoring up supply of mortgage finance to first-time buyers remains a flash-in-the-pan to-date.

*source LSL

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