Property ownership in the United Kingdom has been on the rise for the past couple of years and is projected to continue being so for a while. In the past few months, there has been a notable increase in percentage at which the property in the UK is selling. At the moment, the average price of buying property in the UK is at £163,943. This amount is £35,000 more than what was the 2007 average property price.
Despite having an increase in the number of property sales being made, the property market notes that there has been a significant decrease in the number of demand. This is believed to be as a result of the poor growth of income among the potential homeowners as well as a nationwide poor economic growth. Regardless of all this, the property prices are not expected to go down anytime soon.
A property market intervention has been made to help out home buyers. Through the Help to Buy Scheme, first time property buyers will have their mortgages underwritten if they homes are worth over £600,000. Lenders too have indicated that they will be increasing the number of mortgages as the year progresses. This however is no guarantee since only a few mortgages; less that 10%, were approved during the start of the year.
Due to the uncertainty and difficult economic crisis that the country is facing, the possibility of having the property prices increase is less likely, though it might be possible. However, a million people are expected to ‘move home’ before the end of the year. This is because apart from the Help to Buy Scheme, other lenders are coming up with innovative ways to help people buy property. Examples include the setting up of £12 billion of the tax funds to help underwrite £130 billion mortgages by the end of the year. Also, there has been an emergence of community lenders from 15 local authorities who have come together and started a scheme geared towards topping up the deposits made by first time property buyers. They have also made it available for residents to borrow money from the scheme with only a 5% deposit.
Several other lenders have come up with plans to revive the housing market, which has been gradually stagnating over the years. None of these moves are actually permanent since property prices may once again go up in 2014 and the years after. 2013 therefore appears to be the best year for an aspiring homeowner to take advantage of these opportunities in order for them to own property in the UK.
Judging from the trend showcased by the property market, it would be a great investment opportunity for an investor looking for a potential market to bet their money in. With more people desiring homes, and with much more lenders making it easier for potential homeowners to own property, this market would be ideal for a business opportunity. Moreover, it’s the only business venture that will always have more than enough demand.
By Furkat Elmirzaev