Resurgence in the UK property market
Recent house price figures show that the UK property market experienced a notable positive resurgence throughout the month of March, something that has been largely attributed to the stamp duty holiday extension across Wales, England and Northern Ireland along with not enough supply to meet a growing demand from buyers.
The average UK house price climbed 6.5% higher when compared to prices a year ago, resulting in an average valuation of £254,606 for March.
Welcomed by some, frustrating for others
This would’ve been greatly welcomed by home sellers, but may have proved more frustrating for those looking to get their foot on the property ladder - especially if the pandemic effected their income and ability to borrow from lenders.
First-time buyers did receive some support from the government in the form of a newly introduced government guarantee scheme that provides first-time buyers with access to a wider choice of mortgage products that require just a 5% deposit.
Property market experts warn that the economic fallout from the pandemic has the potential to affect the longer-term pricing of property, so people should move forward with some degree of caution with regards to the long-term outlook. Of course, this is merely speculation as there is no absolute certainty as to how things will pan out in the property market, though the general consensus is that growth is expected to slow somewhat by the end of the year.
House price growth despite various lockdowns
Mortgage data a House Price Index from one of the UK’s largest lenders, Halifax, revealed that UK house prices rose by 1.1% in March when compared against February. This equates to a £15,430 rise in cash terms over the last 12 months despite those months being dominated by a series of lockdowns and other restrictions.
When we think back to March 2020, few would have predicted such strong growth across the UK housing market. According to Anne Clare Harper, chief executive officer at SPI Capital, various lockdowns and rising living standards during the past year has encouraged existing homeowners to consider purchasing larger properties. However, she also claims that inequality among generations and incomes would mean that many people would need to look at rental options instead, which would naturally increase demand for homes in the rental sector.
Though the UK property market is judged by average sale prices, it’s important to remember that there are many different variables that can affect the value of a particular property, such as proximity to schools, regional employment rates, housing developments and a host of other factors.
Whether you’re looking to buy, sell, rent or let out a property, our expert team here at CPS Homes have the knowledge to help you every step of the way. With branches across Cardiff, we’re perfectly positioned to offer valuable help and advice about the city and local property market, so don’t hesitate to get in touch with. You can call us on 02920 668585, e-mail enquiries@cpshomes.co.uk or simply pop into one of our branches.
