Strutt & Parker's research team take a look at the regional property market in Q4 2013, examining the UK excluding London.

Economy: UK economy gathers pace

The UK economy generated 1.9% GDP growth in 2013, the highest figure since 2007 and a strong signal that recovery is gaining momentum. In addition sentiment improved regarding the global economy through the end of 2013 and beginning of 2014. Damage done to emerging markets continues to present significant risk, but it appears problems with major economies’ monetary policies are easing. The fiscal problems in the World’s largest economy, the US, are also starting to be confronted.

For 2014 UK positive sentiment has continued since the IMF upgraded the UK’s economic growth forecast at the end of last year. High consumer and business confidence are credited for this, with strong performance in the retail sector being recorded over the Christmas period.

National property market

The UK’s housing market is continuing to appear equally as buoyant. The steady easing of credit conditions aided by government policy, and the economic recovery, is feeding through to house price growth. The Nationwide House Price Index rose by 7.1% year-on-year for Q4, up from 4.3% in the third quarter of 2013 – the index contracted by 1.1% for the same period in 2012.

Read the full UK Residential Quarterly Winter 2013/14.