With the New Year still in its infancy, lots of housing market UK predictions is already being put across. And like in any other years, there is a lot of optimism in the housing sector. 2014 proved to be quite lively with housing prices increasing by at least 6%. In fact, in some regions such as North London, the prices exceeded 10%. This was being driven by improved economy, recovery from the slump that was witnessed after 2007, and increase demand for housing. The following are some of the notable predictions for 2015:
Decline In General housing Prices
Expert and analysts predict that the market will still remain vibrant just like in 2014. Housing prices in areas such as North East of England and London are expected to remain high. However, they will not be as high as the prices that were experienced in summer and spring season. Prices of houses in South West England, Wales, and Ireland will be much lower averaging at about 4%. The decline in prices is mainly attributed to government stimulus measures, people opting to stay away from high cost regions, and refurbishing instead of buying new homes.
General Elections Dampen the Market
The general elections which are expected to take place in the year will greatly influence the housing market. Traditionally, home owners, developers, realtors and other players have always been cautious during election years. This is caused by uncertainly that comes with new Governments. Also, investors in the sector may hold back their resources as they watch the market. Predictions for the year indicate that fewer developments will be taking place and the completion rate may also dip. There will be less buying and less selling which may lead to low demand.
Move to Cheaper Regions
According to housing market UK predictions 2015, housing prices in areas such as North East of England and London will remain high. This will also affect the commercial sector. Due to this, many people will find the regions overpriced and unaffordable. This will drive them to buying homes in more affordable regions such as Wales, and South West England. Housing pundits believe that price rise will be approximately 17% in the high cost territory and about 2% in the more affordable zones.
Government Stimulus Plan
The UK government has rolled out stimulus measures aimed at jump-starting the economy. The measures that comprise of both monetary as well as fiscal policies will affect several economic variables. These include bank rates, mortgage interest rate, wage rates and economic incentives. Such measures will definitely affect the housing market; however, the impact is expected to be minimal.
From the aspects mentioned above, home owners, realtors, analysts and other players in the housing industry expect the good fortunes experienced in 2014 to continue. However, the growth especially in housing prices is expected to decline a bit. Statistics from organisations such as Nationwide Building Society suggest the price will rise by approximately 5% compared to 6% in 2014. According to the housing market UK predictions 2015, the government stimulus measures, recent changes in stamp duty, bank interest rates on mortgage will play a critical role in the predictions.
When buying first family home property, it is essential to have the necessary tools to cope with the challenges. Knowledge and information with regard to home buying and the general real estate market can help you navigate the stages more effectively. There are many individuals who are looking for ways to purchase homes in order to stop paying high rental expenses. Though the house prices are considerably lower, it has become difficult for the first-time buyers to find the resources to facilitate their purchase. This has been attributed to the shortage of mortgages as well as the demand for large deposits on family homes. If you are considering buying first family home, follow these guidelines for improved success.
Savings for Property Purchase
There are benefits attached to having savings to use for the property. When you identify the general cost of the home that you would like to acquire, you should ensure that you have at least 5% of the value in your savings. However, it is advisable that you dedicate more than this percentage to widen your scope of cheap mortgages for better housing. In addition to the deposit cost, determine the extra costs that will be incurred during the transaction and for moving into your new home. These charges include mortgage fees, legal charges, survey costs and even professional mortgage advice. Moving from your current location to another is also quite expensive and should be factored into the savings budget.
There are certain schemes backed by the government in support of individuals who are first-time home buyers. It is important to find out if you qualify for this assistance to make the financial burden easier.
When looking for an appropriate mortgage, affordability should be prioritized. A home is a long-term commitment that will make monthly demands on your income for some years. Evaluate all the possibilities that could affect your ability to meet these payments especially if you have a variable mortgage plan. Lenders will also subject your income to a test to determine the effect of changes such as increase in interest rates, redundancy and extra outgoing costs that may result from having a child.
You will need to provide evidence of income through payslips and show stability through bank
statements. Self-employed individuals are also required to prove their official income through accurate tax information and business accounts. There are tools that are available to allow you to assess your situation before submitting an application.
With the harsh economic climate, the requirements for mortgage approval have become more
stringent. First-time buyers, especially recent graduates who do not have a solid financial base are seeking assistance from parents and guardians. This is a good option if one can find someone who will agree to be responsible for payments if the buyer is not able to meet the goal. It is a legally binding agreement and therefore it may be difficult to find a willing guarantor. However, this should be considered as a viable alternative to financing the home.
Buying first family home property is a challenging process. Make certain that you look at all the available opportunities and select that which is affordable and suitable for your present and future needs.