In a new study, Rightmove revealed that house prices rose just £714 in a year; something they haven’t seen happen in over a decade.
As the spring market approaches and people consider putting their house on the market, plus with Brexit looming, it’s a time of uncertainty for everyone — but what does it mean for buyers and sellers?
‘Longer daylight hours and green shoots appearing in gardens herald the start of the traditionally more buoyant spring market,’ Miles Shipside, Rightmove Director and Housing Market Analyst tells House Beautiful UK.
‘Sellers’ subdued pricing is now being outstripped by higher average wage growth, meaning that buyer affordability is on the rise at the fastest rate in nearly eight years.’
What does this mean for first-time buyers?
Though it’s uncertain times for everyone, Shipside gives his advice on what this could mean for first-time buyers — and it looks like a promising season if you’re planning on buying your first property.
‘Buyers are being given the leg-up by cheap mortgage rates, if they can meet lenders’ criteria and lay their hands on a large enough deposit. In theory the scene would be set for an active spring if it were not for the uncertain political backdrop,’ explains Miles.
‘As it is, the extent of that activity will depend on the degree of hesitancy among sellers to try to sell and be realistic on price, and buyers overcoming short-term uncertainty and taking a medium-term view that this is a good time to buy. As always those decisions will also be influenced by local market dynamics.’
He goes on to say: ‘A first-time buyer in London recently enthused to me that she and several of her friends were now buying properties.
‘She was aided and abetted by a five-year fix of 1.7 per cent, meaning that she could live cheaper on her own than sharing a rented property, since she was fortunate enough to be able to find the money for a deposit. Sellers’ greater willingness to negotiate because of the political uncertainty also helped her cause.’
Source: House Beautiful