Whilst overall growth remained slow, The Royal Institution of Chartered Surveyors (RICS) reported in April that interest by potential buyers of new homes in England and Wales rose in March.
This interest has been attributed to the ‘Help to Buy‘ initiative announced in the recent Budget and an improvement in mortgage availability due to the Government’s ‘Funding for Lending’ scheme. The former offering a 20% equity share for new-build buyers who can raise an initial 5% deposit and the latter giving lenders – both banks and other mortgage providers – access to cheap funds, on the proviso that they then pass this rate reduction on in loans and mortgages to small businesses and home buyers.
RICS reported that sales per surveyor reached a three-year high in March; however, more members reported a fall in house prices generally, rather than a rise in the first quarter of the year.
Peter Bolton King, of RICS, was quoted as saying: “A buoyant, healthy property market is central to economic recovery and, whilst these are still very much early signs, it is encouraging that sales are beginning to pick up.”
These were all encouraging signs for the housing market; particularly with mortgage rates sitting at historical lows. However, concern was raised at the level of charges being made for them; with one market commentator estimating that average fees for mortgage approvals has risen by 8% since January, with an average of £1,522 being reported in April.
As a final caveat, the National Association of Estate Agents (NAEA) cautioned that first-time buyers should very carefully research, not only the location of any intended house purchase, but also the options available to them to finance the home on the most advantageous terms.
No comments:
Post a Comment