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.
So, what can you do to get on the housing ladder? Here are three ideas to consider;
- Consider applying for assistance under the government’s ‘Help to Buy’ scheme. This is aimed at people outside the housing market that are interested in buying a new home.
- Start a specialist ISA savings account now and benefit from government assistance when you are ready to buy your home.
- Consider buying just a part share in a home and renting the rest for now. This has the added benefit of allowing you to increase your equity through the repayment of your mortgage and any rise in house prices over time.
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.
Download our Free First Time Buyers Guide
Recent posts
Increase in zero-deposit mortgages in 2024
2 days ago
There was a 32% increase last year in 100% loan-to-value (LTV) mortgages which are mortgages that require zero deposit. According to a recent report by chartered accountants and business advisers, Lubbock Fine, the reason behind this is buyers simply struggling to save enough for a deposit.
Average savings by age in the UK
3 days ago
Many people are quite private when it comes to what is in their bank account. In this short blog, we look into what Brits have saved by age group.
Research from buy-to-let lender, Landbay, shows that UK landlords are looking at raising rents ahead of the Renters' Rights Bill which is due to come into force this year.
Data shows landlords could miss out on green mortgages due to expired energy performance certificates.
Buying a house is a big deal, and where you are planning to buy will make a difference financially. In this short blog, we look at the most affordable and most expensive areas and how much you need to be earning to buy in there.
Pros and Cons of Equity Release
20 May 2025
Equity release is a type of mortgage that allows homeowners 55 and over to access money from their property's equity without having to leave their home. This is done by securing a loan against the house which is usually repaid by selling the property when the borrower passes away or has to move into long-term care.
Your House Viewing Checklist
19 May 2025
It’s important to ask questions about the property you are interested in before taking that step to make an offer. A little probing can make all the difference between buying your dream house or something that requires a lot of work.
Half of over 60s predicted to benefit from accessing housing wealth through Equity Release
16 May 2025
There are millions of homeowners over the age of 60 who are likely to release money from their homes to pay for their lifestyle during retirement giving those who are 'asset rich but cash poor' a way to live out their retirement the way they wish.
More information
Trusted by
