Enable Independent, Independent Financial Advisors in the UK have noted that the average property price in the UK has exceeded £250,000 for the first time, according to new research.
Since George Osborne announced the Help to Buy scheme in March the average house price has increased by 1.2% taking the cost of an average home to £252,798. Prices in London have also reached a new record, with the average price of a home in the capital being £515,243.
However in other areas of the UK; including North Humberside, Yorkshire and Humberside, East Anglia and Wales property prices have continued to level out, although according to Rightmove property prices in these areas have also started to show signs of improvement.
Rightmove said that people with property in the South East will benefit the most from rising prices, as people are finding themselves pushed out of London and into the surrounding areas.
Although the Help to Buy scheme will not be officially launched until 2013, it has created excitement amongst property investors who feel that as first-time buyers will be in a better position to buy homes, which will have a positive effect on property prices in the UK.
Some critics of the Help to Buy scheme, including the IMF (International Monetary Fund), feel that it will simply create an artificial housing bubble, making it even harder in the future for people to get onto the housing ladder. However Rightmove feels that the new scheme will help banks to access cheaper funds which they can pass onto customers.
Mile Shipside, housing market analyst at Rightmove stated: "Agents report that with Help to Buy for the wider market due in January, some buyers are pre-empting any potential scheme-induced price rises by doing a deal now."
Homeownership is still very important for younger people, but even with the launch of this new scheme most 20-45 year old still believe that they will probably not be able to get onto the housing ladder.
If you would like to find out more information about the Government’s proposed scheme, why not get in touch with our team of friendly Independent Mortgage Advisors.
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