Will property costs in the UK continue to rise?
Property costs in the UK
For many of us, property prices are simply too high. A sizeable majority of us are priced out of living in our capital where, along with higher living costs, you’ll find the average house price to be a whopping £481,556. Perhaps soaring prices are to be expected in Britain’s capital, but even outside of London you’re likely to encounter high prices; the average cost of a house in Britain is an eye-watering £211,000. This represents a massive increase in average costs at the beginning of the new millennium, with the average spend on a UK home being less than half of the current amount at only £75,000 in 2000.
The problem for many prospective first-time-buyers is not only that house prices are too high as they are either; it’s the fact that they’re going to continue rising for the foreseeable future. Property costs in the UK are set to soar by 30% over the course of the next five years, pricing out millions more buyers in the process. The reasons for this are varied. Many argue that a lack of houses being built are to blame for the subsequent rise in prices across the UK, whilst others contest that stagnating wages haven’t kept up with the rising cost of living in Britain, making it impossible for homeowners to save enough.
Having said all of this, however, it is still possible for you to finance your property. Even in face of the fact that house prices may continue to rise for the next 50 years, obtaining the right financial package with sensible repayment options means that you’ll still be able to afford the house of your dreams.
Packages such as Help To Buy ISAs are a fantastic option for first-time buyers.
These work by having the Government top-up everything you save by 25%, so if you save £200 the Government will give you an additional £50. You can receive a total of £3000 from a Help To Buy ISA, which will give you a deposit total of £15,000 towards your first property.
Many young first-time buyers have used this scheme in order to pay for their first home and it’s a great choice if you’re looking to do the same. Even if you don’t choose this option, a critical rule to bear in mind is to be shrewd and shop around when choosing your mortgage. Always add together the final repayments you’ll be paying before entering agreements with banks, and don’t be enticed by initially attractive options such as interest-only loans which may not require paying back immediately. These can work out more expensive in the long run and will have to be paid back eventually.
However, if you have already found yourself in difficult circumstances due to issues such as property debt, or owe a large amount which is putting your assets at risk, it is worth taking a no obligation, impartial, free consultation here at Bell & Company. Call us today – 02895217373