01/09/2016
Despite fears about Brexit, the economy and lending criteria, house prices have continued to rise in 2016.
Figures recently released by the Office of National Statistics (ONS) reveal that the average house price in the UK rose 8.7% in the year to June 2016.
The price tag of £214,000 is £24,000 higher than the £190,000 buyers could expect to pay in September 2007 when the market was at its peak. All good news for anyone looking to sell, but this presents a problem for anyone wishing to get on the property ladder and those looking to upsize.
The house price increase has been reflected in the number of 25 – 29 year olds owning their own home, which has fallen from 55% in 1996 to 29% in 2015. The number of people aged 30 - 34 owning their home has also dropped from 68% to 45% in the same time period.
But it’s not all bad news. The recent cut in the base rate has seen lenders following suit. Fierce competition between mortgage providers will present a window of opportunity to anyone thinking of buying into the housing market. And, for those who already own a property, it’s a chance to lock into a low rate fixed deal to shelter against further uncertainty.
As with all things, however, these historically low rates won’t last forever. As the economy begins to stabilise and recover, the Bank of England will raise interest rates again.
Please note that this article is meant as general guidance and not intended as legal or professional advice. Updates to the law may have changed since this article was published.