The latest property market reports suggest house prices within the UK are continuing to decline despite the UK emerging from the recession in the three months from between July and September.
The average house price within the UK decreased by a total of 1.7% compared to the same time a year previous. Central London is the only area of the UK to buck the trend with annual property prices rising by an astonishing 9.3%. The property market in Central London has been operating in its own bubble and is showing great resilience. Such resilience is almost propping up the entire UK average house price with the average price in Central London between April to June 2012 being at a staggering £458,035.
Although many believe the UK housing market is grinding to yet another halt there has been promising signs in regards to first time buyers. This week Nationwide, the UK building society, reported that in the last financial year to September they had doubled its lending to first time buyers.
The building society has lent £2.5bn to 20,000 first-time buyers, which accumulates to 18% of all first time buyers within the UK. Such confidence and investment is being reflected in the wider property market with many other mortgage lenders following suit.
There are now more options and mortgage products available to first time buyers than there were a year previous with 58 mortgages only requiring a deposit of at least 5%. If you are to compare this to the year previous which only had 24 options it is easy to see how much the property market has recovered within the last year. Confidence from lenders is growing; however there is still a lack of confidence in the wider economy with consistent rises in energy bills and people still low in job confidence.
The UK government have also created schemes to boost the housing market through the development and implementation of the NewBuy housing scheme. The scheme which is backed by the government only requires a 5% deposit to be placed to qualify for a 75% mortgage. The additional 20% is loaned from the government and house builder and only requires repayment when the property is resold.
If you are one of the thousands still aspiring to own your first home, you will be happy to know there are plenty of fantastic options available. If you are ready to take the plunge remember it can be stressful, long winded and at times de-moralising but stay positive, serious and open minded and it won’t be long until you have bricks and mortar you can call your very own.