Cost Of Average UK Home Breaches £250,000 For First-Time
There is considerable activity and interest in the housing market right now. The stamp duty holiday is motivating people to move home, as there is a chance to save up to £15,000 on fees in many areas.
With this in mind, many people will be interested to learn the cost of the average UK home has moved beyond £250,000 for the first time. This is according to The Halifax, recognised as the largest mortgage lender in the country.
The company, which is part of the Lloyds Banking Group, said property prices in October 2020 were 7.5% higher than house prices in October 2019.
Buyer activity has changed in 2020
The demand for larger homes has risen, and people are looking for property with greater garden space. There is no denying there has been a change in priorities because of the COVID-19 pandemic, and lockdown periods. Also, remote working is far more common, and this influences buyer activity in the housing market.
The Halifax has also said the economic issues related to the pandemic will place “downward pressure” on house prices as we move forward. The lender believes this will arise in the initial few months of 2021, and there has already been a slight slowdown in the month-on-month increases in property values.
Russell Galley is the managing director of the Halifax, and he has spoken about the furlough scheme and other mechanisms used by the Government. Russell said; “The country’s struggle with Covid-19 is far from over.”
Many factors shape the housing and mortgage market
Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “People require more outdoor space and not all flats have roof terraces and balconies. But while Covid is having a massive impact it is likely to be temporary in the scheme of things, with people not able to work from home four days a week forever. Once we have more normality, [employers] will want to see people in the office more. Those flats that are 20 minutes from the workplace will be more appealing than a house on the Dorset coast if you have to be in the office four times a week.”
It is also important to bear in mind there is a massive difference in house prices across the country. While it is comforting to look at an average figure and then compare your home or what you expect to pay, the situation in your chosen area might be extremely different.
Anna Clare Harper is the author of Strategic Property Investing, and she said; “If you’re thinking about buying a property in this fast-changing environment, one of the best things you can do is to detach from the emotional dimension, so that you are able to analyse whether you are getting a good price and value for money.”
While there are new challenges to overcome in the housing market, people shouldn’t consider arranging a mortgage to be an impossible task. However, it is vital people accept help and assistance from professionals in the field. If you are keen to arrange a mortgage, speak to a mortgage broker or experienced adviser and make sure you are fully equipped to make an informed decision.