The UK housing market seems to have been the subject of an ever-spiralling boom in house prices and, with a few notable corrections in each decade, this has largely been the case. However, certain regions of the UK have benefited (or suffered, dependent on your point of view) from significantly greater price rises.
No matter where you live, property in the UK is now relatively expensive with the average house price having nearly trebled since 1995. In the 1990s the average house price was just twice the average wage. In 2016 house prices in London were reported to be between 3 and 9 times the average wage! In the South East, any increases to the average wage have generally been outstripped by large increases in house prices.
With this disparity between the nation’s average wage and the citizen’s average borrowing capacity one could be forgiven for suspecting that a market correction is overdue.
However, with interest rates still very low, mortgage affordability criteria are still being met by enough people in the market for values to remain constant or increase in popular areas. This, coupled with an acknowledged under supply of housing and a rising population has compounded the problem, making it one of the most hotly debated political issues of our time.
Of course, none of this is of much comfort if you have a young family looking for a home of their own and you can’t provide one.
When buying a home it's always worth remembering that this should be, at least primarily, your home and not an investment. If it increases in value during your ownership then that is an added bonus to the feeling of knowing you own your own piece of place to rest your head and keep your family warm and safe. And remember, your home may be at risk if you fail to keep up the monthly loan repayments.
For more information or to speak to a mortgage adviser, contact us on 01628 507477.
Yesterday
Skipton Building Society launches ‘Delayed Start’ mortgage meaning first time buyers won’t be required to make repayments for the first three months.
According to a survey by Skipton, first time buyers who bought their home in the last five years found that in the first three months of living there, they were spending upwards of £30,000.
6 days ago
If you have recently moved into a property with a garden that requires a little TLC, or you’d like to get on top of your current green space, check out our tips.
9 days ago
High street lender, NatWest, have launched a new product to help first-time buyers purchase a property with assistance from a family member or friend to get them on the property ladder sooner.
10 days ago
‘Buy Now, Pay Later’ (BNPL) schemes, such as ‘Klarna’ are short-term loans that allow shoppers to make a purchase, but delay paying for it for an agreed amount of time.
Klarna is one of the most popular BNPL services with 18 million customers in the UK alone, and offers interest-free payment options which is appealing to shoppers. However, does it affect a mortgage application?
15 days ago
We look at how to get the best Buy to Let mortgage rate, what's in store going forward, and options as a landlord with increasing costs.
24 days ago
Throughout this past week, lenders have continued to reduce their mortgage rates giving borrowers in the UK some welcome news following the change in global tariffs under US President, Donald Trump.
24 days ago
Did you know that buying a house, or relocating is in the top 10 most stressful life events?
Stress of course is an unavoidable part of life and there are many reasons why people experience stress, not just buying a house!
There are lots of effective ways to manage and reduce stress, check out our tips to help you.
With the stamp duty relief ending in England and Northern Ireland, we have listed the top 10 cheapest areas for first-time buyers as published by Rightmove.