House prices hit record highs & what this means for you.
24th May 2023
Understandably, the news that house prices are increasing can make the dream of owning a home feel slightly out of reach with news outlets blasting out record highs within the housing market.
Here’s where it differs and why the increase in house prices will eventually benefit those looking to move onto the property ladder. With the increase of house prices jumping up over the last month, Rightmove (RMV.L) has reported a better outlook and steadier mortgage rates, which benefits those looking for higher rate mortgage lending to enable them to purchase their dream home.
Of course, the increase comes at a time where the housing market already feels understandably expensive and that’s because it is. The average cost of a property jumped by 1.8% alone in the last month leading into May. This jump however is a positive increase for the future of property sales and purchases.
With the increase of property prices, people are retaining the equity in their homes when they are coming to sell; This, together with improved lending rates creates an ideal situation that will benefit the economy and the housing market, offering stability not only with the amount people are able to borrow but also knowing that the market is continually increasing and has not seen a decrease this year despite prior predictions of an almost 15% decrease in the housing market.
So, what does this mean if you’re a first-time buyer?
While property prices have increased, mortgage rates have steadily begun to lower. This, together with the prospect of lower deposit mortgages being implemented by lenders, offers first-time-buyers a much better chance at securing stable mortgages with lower fixed-mortgage rates.
The stability of lower rates with fixed-term mortgages are massively appealing to first time buyers. As the renting market increases to almost unobtainable and unrealistic monthly payments and outgoings, the cost of owning is much more obtainable, reachable even, than monthly rent and expenses. Not to mention, with the addition of Skipton’s 100% mortgage being introduced, the prospect of owning a property is becoming much more obtainable than previous years.
This also means that in line with the rise of property prices, new build homes will be comparatively priced based off the average sales of homes within surrounding local areas. Meaning prices both on the second-hand housing market and new build market will increase alike but stay competitive. The difference comes of course, with new build homes, you are paying for bespoke and custom homes finished to your exact taste, with options and extras added as you wish and to your preferences.
It feels like a no-brainer to save the funds of doing renovations to an existing property, with the average cost of renovating a 3-bedroom home currently standing between £76,000-£138,800, and instead factor this into a new build property, with a stable fixed-rate mortgage, competitively priced house prices within the current housing market, and the help of moving schemes on top of your savings.
What are Moving Schemes?
What are Moving Schemes?
At Walton Homes, we offer a range of Moving Schemes and Offers to help make your move less stressful and more cost effective for everyone from first time buyers to those looking to downsize – Latest Offers This Way!
Our Offers:
Spring Offers – We are brightening up home buyers’ opportunities to purchase their forever home across all four of our developments with our selection of Spring offers. Save thousands on incentives included on a range of exceptional build-complete properties* – Find your deal.
5% Deposit Paid – We can help get you moving and pay up to 5% of your deposit. Meaning you need to borrow less from a lender and could even secure a more competitive mortgage rate! ** – find out more.
(*Terms and conditions apply, speak to our Sales Team for more information. **Offer available on selected plots only. Offer is to contribute up to a maximum of 5% deposit payable at the time of completion and is subject to lender’s criteria. Source of information)