Still a Nation of Home Owners
According to a survey carried out by YouGov on behalf of the Council of Mortgage Lenders almost all current home owners (95%) still want to own their own property in ten years time.
More than 8,000 people took part in the survey which concluded that aspirations to home ownership are still strong with 79% of British adults wanting to be home owners. Of the remainder, 8% aspired to be social tenants and 4% believed that they were more suited to becoming a private tenant. All others were happy to stay with family or friends.
The survey was completed before the Budget when the Chancellor announced new measures to help aspiring home owners through the introduction of the ‘Help to Buy Mortgage Guarantee Scheme’
Help to Buy Mortgage Guarantee
This scheme is designed to support those with a small deposit and who can afford the monthly repayments apply for a mortgage of up to 95%. It is also available to those wishing to re-mortgage with a new lender to obtain a better deal.
Because the Government are guaranteeing an element of the loan lenders will be more willing to increase the amount they are prepared to lend.
The scheme is available on new builds and existing properties for anyone with at least
5% deposit. You must be able to secure a mortgage from a lender which means having a good credit rating. Available from 1st January 2014 the scheme supports house purchases up to the value of £600,000.
What is the likely effect on the Property Market?
With higher loan to value mortgages becoming more readily available it is anticipated that this will drive the demand for property and therefore boost the market from January 2014. A fresh demand could drive price movement in an upward direction.
There are early indications that this is already beginning to happen. Neilons have seen a marked increase in the number of properties coming to market, the number of offers being made which has resulted in an increase in the number of properties being sold during March and April. We are anticipating a busy summer for sales.
Is Now A Good Time to Move?
If this momentum continues during 2013 together with the added impact which we are likely to see in January 2014 then those wishing up move up the property ladder to a more expensive property could have a window of opportunity now to buy before the anticipated price increase. Prices are still broadly static making a move much more affordable at the moment.
If you are thinking about selling, why not take this opportunity to ask us for a no obligation consultation to discuss what opportunities are available to you.