Recent property news suggests that the market in London has increased by 10% which generally is the first place in the country where property values see an increase. Investment from overseas and the level of earnings within the city plays a part in this and helps to keep the market stable.
Once the knock on effect reaches areas outside of London and these towns and cities also see an increase in house prices then the news tends to positively spread throughout the country and begins to appear in newspapers, magazines and on TV.
Some of the worst performing towns in Britain have been listed as Rotherham, Colchester and Walsall with some only seeing marginal increases in value if at all. But overall, the news suggests that the trend is changing and the market is slowly getting back on its feet with London experiencing a 10% increase in house values.
One factor which enables the market to start moving again after a recession is the availability of funding for first time buyers. The government Help To Buy scheme has enabled first time buyers to think about purchasing their own property again, allowing them to place smaller deposits down for the property.
The buyer places a minimum of 5% deposit on a property, the government will provide a loan of up to 20% of the property price, meaning the mortgage is only needed on the remaining value up to 75%. This reduces the buyers mortgage payment making buying more affordable again.
The Help To Buy scheme began in April 2013 and runs until March 2016, depending on when the funding is taken up. The scheme began by only being available for new builds but has since been made available to other types of property.
The knock on effect of introducing the government backed scheme is that it allows builders to start work on new developments as finance is made available to builders once again. The scheme boosts confidence in the market then creating more public interest in buying property again. This not only helps the first time buyer but enables the next tier of property owners to move on as a result and the impact is felt on a much wider scale. There is a comprehensive list of builders linked to the scheme who are linked to major high street lenders.
So if you fancy owning a property in 2014, this could be a route for you.
Happy Investing!
Once the knock on effect reaches areas outside of London and these towns and cities also see an increase in house prices then the news tends to positively spread throughout the country and begins to appear in newspapers, magazines and on TV.
Some of the worst performing towns in Britain have been listed as Rotherham, Colchester and Walsall with some only seeing marginal increases in value if at all. But overall, the news suggests that the trend is changing and the market is slowly getting back on its feet with London experiencing a 10% increase in house values.
One factor which enables the market to start moving again after a recession is the availability of funding for first time buyers. The government Help To Buy scheme has enabled first time buyers to think about purchasing their own property again, allowing them to place smaller deposits down for the property.
The buyer places a minimum of 5% deposit on a property, the government will provide a loan of up to 20% of the property price, meaning the mortgage is only needed on the remaining value up to 75%. This reduces the buyers mortgage payment making buying more affordable again.
The Help To Buy scheme began in April 2013 and runs until March 2016, depending on when the funding is taken up. The scheme began by only being available for new builds but has since been made available to other types of property.
The knock on effect of introducing the government backed scheme is that it allows builders to start work on new developments as finance is made available to builders once again. The scheme boosts confidence in the market then creating more public interest in buying property again. This not only helps the first time buyer but enables the next tier of property owners to move on as a result and the impact is felt on a much wider scale. There is a comprehensive list of builders linked to the scheme who are linked to major high street lenders.
So if you fancy owning a property in 2014, this could be a route for you.
Happy Investing!
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