Buy online or call us Free on 0800 515 3810800 515 381

Opening Hours

Mon - Fri 8:30am to 8pm
Sat 9am to 1pm

House Prices at Eight Year Low

A recent survey that was carried out by Halifax has revealed that the number of first time buyers in Britain has fallen to a record low in 2011. This news is somewhat unsurprising when we take into consideration the dire state of the economy and the particularly difficult year the UK has had financially.

House Prices

House prices have declined to their lowest levels in eight years; however this still hasn’t helped boost figures for first time buyers. This is due to the fact that those prospective first time buyers have struggled to raise enough money for expensive deposits and mortgages.

In 2011, it has been estimated that there were around 187,000 first time house buyers. That figure may sound like quite a lot, but when you compare it to last year, there has been a significant 7% drop.

Government Steps

These figures were released just a month after Chancellor George Osborne explained that he wants to do everything possible to help Britons get on the property ladder for the first time. The recession has been a very tough period for the UK housing market and Mr Osborne is clearly keen to work towards restoring the housing market. How long that restoration will take is anyone’s guess at the moment however.

In terms of steps the government is taking to help, Mr Osborne outlined details about a mortgage guarantee scheme. This is designed to help first time buyers with large deposits that would otherwise deter them from making the leap to get onto the property ladder for the first time. This would then inevitably help towards paying for property insurance as well.

What Will 2012 Hold for Housing Market?

Meanwhile, forecasts have already been made about house prices in 2012, and so far, it seems that they are set to continue falling. A 1.7% drop has been forecast with the housing market still vulnerable to any changes in the Eurozone. So, if the debt crisis worsens in mainland Europe, then we could see a further drop in UK house prices.

That would certainly make it easier for landlords to add to their property portfolio’s, which will only be a good thing for landlord insurance providers, but it would also make an increasing number of people even more reluctant to sell their home. Why sell at a cut price when you could wait to see if the housing market will bounce back is likely to be the attitude of many. What do you think will happen to the housing market, and the Eurozone, in 2012?

New Beginnings

An estate agency, specifically Connells in Leamington, has urged those homeowners looking to sell their property at the turn of the New Year to ensure their property is ready for, what is, a traditional New Year rush.

Prime Time

Connells have stated that January is a prime time for people to move home, and buyers are likely to begin looking around the property market for a new home at the beginning of the New Year. New year, new start and all that…

For those selling up, in order to take full advantage of interest from buyers, it will be vital to get your property on the market as soon as possible in January, and of course to make sure your property is presentable, and very sellable!

Growing Confidence

The branch Manager of Connells, Carly Baskott, has been commenting: “At Connells, we’ve seen growing momentum and interest from buyers in the second half of the year. The January market is traditionally busy and, based on the increasing activity we have had over the last six months, we expect this New Year to be the same if not better.”

It seems apparent that over the past six months buyers have come back to the housing market with greater confidence. This has been helped by better mortgage packages being offered.

Ms Baskott continued saying: “Christmas and New Year is a time for resolutions and new beginnings, and buying a home is often on people’s wish list. Sellers who want to take advantage of this annual flurry of activity should get in touch now.”

Landlord Portfolios

Furthermore, landlords may look to bolster their portfolios at the start of the year, and so, if they are buying new properties, it would be wise for them to ensure they are insured with a landlord insurance quote before they begin looking for new tenants.

With the Christmas and New Year period already in full swing, property experts will be keeping a very keen eye on the number of transactions going through during the next couple of months.