The housing market began 2013 treading water, with average prices up by 0.2% in the first quarter, having fallen by 1.1% in Q4 2012. With the Help to Buy scheme for purchases below £600,000, house price growth has picked up to the extent of concerns being raised about another bubble.
For Q2 2013, year on year growth was 1.4%, with prices up by 5.2% in London. The fact that sales were up against Q2 2012 is not surprising as this was the period when stamp duty exemption for first time buyers ended which had encouraged new entrants into the market. Other schemes, such as Home Buy, Right to Buy, and Funding for Lending started to have impact
While interest rates remain at historically low levels, affordability should remain good for existing mortgage-holders and those first-time buyers who can get mortgage finance by having enough capital for a deposit. On the supply side, house-building has also started to recover after the rapid fall in the level of development in 2007. Although there are positive signs of growth, the on-going lack of traditional finance for large-scale development and inertia caused by planning reforms continue to act as a drag on the building of new homes. While the level of starts has begun to marginally rise again, it will take some time for output to increase significantly and is anticipated the level of development completions will remain suppressed over the next two years.
News today predicted that growth in East Anglia could be as much as 10% over 2014, as more and more people are pushed out of London due to house price increases.
Unfortunately with rising demand and the on-going shortage of housing, we could see rising prices over the short and medium term, leading to continued affordability problems. If you want to talk through your options for owning your own home in 2014 Enables IFA’s are happy to talk you through your options.
Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 – Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE