This time last year house prices were lower by 7.1% Nationwide building society reports*. But will this provide an issue for first time buyers. Well yes and no. Firstly, a house price rise is usually an indication of two things, people are able to buy houses, which could be because people have been able to save a good deposit over lockdown. Or there is no enough house on the market, so that there is a demand but not the supply. Most likely it is a bit of both.
Nationwide reports a 7.1% house price rise from this time last year.
In this really interesting article from the BBC* it reports instances of a high demand for new houses. And houses that are not that special going for far higher than their valuation. And this could be a lot of different aspects at work, as mentioned before, people may have had the opportunity to save, there is a 5% guarantee scheme from the Government (we wrote an article on this if you don’t know about it), and there is Stamp Duty holiday up until the end of June.
Hopefully this summer there is people able to buy houses, and people able to get good deals on selling there home. After lockdown it has been tough on all sectors and seeing the housing market bounce back can give any economy hope moving forward.
It also may encourage developers that there is business in building new houses, which will help placate the increase of demand. I don’t have a degree in business but even I know that an increase of demand is just waiting for someone to fill in the supply.
Remember if you are looking to buy or sell a property, speak to someone you trust and get a good understanding of what is happening out there before you make this decision.
*https://www.bbc.co.uk/news/business-56941162
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