Confidence Builds in the Property Market
According to a new report from TwentyCi, national house prices are stabilising and average asking prices in London are starting to grow. This indicates that some confidence in the national property market is beginning to return.
The knock-on effects from Brexit – both of financial and political insecurity –manifested itself in the lack of certainty in the property market. However, it’s now clear that confidence in the UK’s housing market is bouncing back.
The report also found that smaller homes are the most popular units on the market, with new instructions up by almost 7% (year-on-year). A strong labour market and real wage growth has also led to an increased number of home owners looking to buy.
London continues to function in its own bubble. This is reflected in the 3.1% growth in the average asking price in the Capital, which the report puts down to a lack of supply.
While an improving housing market is fantastic for those already on the property ladder, it’s problematic for first time buyers looking to purchase their first home.
However, it’s not all doom and gloom for first time buyers, as Shared Ownership remains an accessible way in which to buy a property.
Shared Ownership allows first time buyers to purchase a share of a property (typically 25%). This means that buyers only need to raise a deposit and pay a mortgage on the share they own, with a subsidised rent paid on the share that isn’t owned.
Due to this structure, the majority of Shared Ownership buyers actually see a reduction in monthly outlay versus rental accommodation, allowing them to afford to become a property owner, regardless of the market movements.
For more information on Shared Ownership or to view our varied property portfolio, please visit our website.
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