British housing prices continue to increase, with current monthly price increases at their highest rate in three years. New information from Halifax shows that Britain’s real estate market is on the way up – to the benefit of some, and concern of others.
First-time homebuyers are now at the highest level in six years, with many former renters eager to own their own homes. Despite this, the growing cost of acquiring property in many UK cities has pushed first-timers out of the property market.
Banks and building societies are currently benefiting from interest rates that are incredibly low, particularly compared to recent historical levels. The low interest rates have attracted hundreds of thousands of first-timers to the property market.
The surge in homebuyers has pushed the price of property upwards, with average home pricing now £170,231. Just twelve months ago, Britain’s average home cost just £160,292.
The 5.4 percent surge in prices hasn’t put off buyers, with LSL Property Services – a leading real estate agent – noting that over 26,000 first-time buyers took on loans to buy property in July.
The number of first-time buyers, now at its highest level in six years, is expected to continue to increase. The surge in borrowers over the past twelve months shows a staggering 45 percent increase in the mortgage market for new property buyers.
At the same time, an increasing number of adults, unable to afford the increasingly expensive prices that British homes are sold at, are choosing to remain tenants or, as rental rates increase, even stay with their parents.
In areas such as Cornwall, where the average house costs 10 times the annual wage, young professionals are increasingly opting to stay at home until their 30s instead of taking on debt to acquire their own property.
