More Evidence of a Slower House Market
The UK is still experiencing a property market slowdown with stagnation in many areas and even some evidence showing that house prices have now fallen in key locations. Even though values have risen since last year it has now been reported that average prices are now lower this month than last. This may just be a slight blip but if it were to continue then we could be entering a downward trend in the short term.
First Time House Buyers are Benefiting
Supply for new starter homes has greatly increased over the past year and due to the high level of supply, property prices for first time buyers has fallen by 2%. The government help to buy scheme which will help 194,000 house buyers has certainly proved to be a successful scheme for first time buyers and with recent news of a new initiative this week from the government saying that they will top up deposit savings for first time house buyers by £50 for every £200 saved, there is clearly even more positive news for this very important market sector. Essentially the UK is facing a housing crisis shortage and in order to get more houses built they need a sell a lot of property quickly and therefore even more new build houses can be constructed, even though the market in general has become more stagnant this is all very positive news for the future.
Estate Agents have Warned of Slower Sales
According to The Telegraph the lettings market is doing fine, however sales are down almost 4% and this figure is alarming when compared to last years sales increase of 24%. Foxtons have much confidence in the London property market remaining stronger however they have gone as far as saying that the rest of the country may become as subdued and could go back to levels that were seen during 2012.
At Direct House Buyer we believe that prices will remain stable for the remainder of the year so there is no need to be too concerned. Now that Parliament has closed it’s doors until the general election in 5 weeks time there won’t be any further legislation changes and it’s believed that the property market will remain subdued as investors and buyers may remain cautious during this possible transition period. Unfortunately, for those who don’t own a property it appears that rents are continuing to rise and it has been reported that the cost of renting increased 8% since last February in London. It’s Ironic and unfair how rentals increased but mortgage interest rates are remaining low. In theory you would expect it to be cheaper to rent than to own but in today’s society it appears to be the landlords who have pushed house prices up and are profiting from the inability of those who are unable to buy their own house.