New research shows that house prices could rise by £45,000 by 2018...

Enable Independent, financial advisors in Bishop's Stortford were interested in new research by the Centre for Economics and Business Research showing that average house prices in the UK are expected to increase by as much as £45,000 by 2018.

They have also said that next year they expect to see house prices to be 2.3% higher than in 2007.
Cebr also predicts the average home price will be £222,000 this year, 1.4% higher than in 2012, but just under the peak achieved immediately prior to the global financial crises.

Many economists have predicted that the new Help to Buy scheme will increase house prices, before housing supply catches up with the new demand. The CML (Council of Mortgage Lenders) have already reported that homes loans in the UK had got off to the best start since the downturn in 2008. However it is difficult for economists to make an accurate prediction, until the details of the new HtB loans are disclosed later this year.

With rents working out more expensive than a mortgage, there has never been a better time for first-time buyers to consider entering the market. First-time buyers can also choose from some very favorable mortgage rates, benefiting from the new Help to Buy scheme, offering a 20% interest free loan to put towards a new home.

If you are looking at investing in a new home, then why not give one of our Independent Financial Advisors a call, and we will be able to help you to choose from mortgages from across the market place.

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House prices continue to rise throughout 2012, according to latest index…

House prices will continue to rise according to homeowners in eleven regions across the UK. Markit who questioned 1,500 homeowners in a House Price Sentiment Index (HPSI) said that his is the first time that people have thought the price of their home will rise for more than two years.

Property owners in London who have seen their properties continue to rise over the past few years, are among the homeowners who believe they will see an increase in the price of their property over the next 12 months, followed by those in the South East and Wales.

Some households think that the value of their property has reduced over the past month, but say they have done so at the slowest rate since 2010. 8.5% of homeowners said that they feel as though their homes have risen over the past month, while 11.7% said they felt as though the value of their home had decreased, giving a HPSI reading of 48.4. If this figure is under 50 it shows that prices are falling and if the figure is over 50 it shows they are rising.

This figure o f 48.4% is up from 47.6 from last month, and is also the highest reading since June 2010. Since the creation of the HPSI, the index has been a clear indicator of house trends. This index bases its findings on household sentiment rather than historical evidence or mortgage market evidence.

Grainne Gilmore, head of the UK residential research as Knight Frank commented: ‘The optimism over house prices seen at the start of the year has strengthened sharply this month, with households now more upbeat about the outlook for house prices than at any time since June 2010.  Households in every region expect prices to rise, reflecting a real change in outlook across the country,’

‘The data suggests that households have brushed off the rather gloomy economic news, and instead have been buoyed by positive signals emanating from the mortgage market in recent weeks, with lending rates falling sharply and lending to new buyers picking up. Indeed the HPSI readings show that mortgage borrowers are among those who are most optimistic about house prices. Likewise, the outlook of those aged between 35 and 44 has becoming much more positive, and it is these buyers, who will typically be buying their first or second property, who are set to benefit from the looser mortgage lending conditions,’ she explained.

‘There are hopes that the Bank of England’s Funding for Lending scheme will further boost lending this year, and signals from the new Bank of England Governor that the base rate may be kept on hold for a prolonged period will only help those trying to climb onto the property ladder,’ she added.

If you are looking at buying a home then why not contact Enable Independent, as we are independent which means that we can choose a mortgage that best suits your needs. For more information give one of our team a call today on: 01279 755950.

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