Buyer hesitancy has been a common theme over the last few years, with affordability of housing, Brexit and a lack of confidence in the market frequently being quoted as reasons for renters to stay put.
It would therefore be understandable if potential buyers were still uneasy about entering the market. However, the reality is that increasing numbers of people are putting any worries aside and climbing onto the property ladder, regardless of the current climate.
Recent months have seen a rise in mortgage approvals, indicating that the market is starting to quicken as more people look to buy. Affordability seems to be the driving factor, as it is improving at its fastest rate since 2011. This means that purchasing a home is more accessible than it was ten years ago. This has been compounded by the political situation, as many buyers have grown tired of waiting for Brexit to be resolved and have instead taken advantage of the opportunities being presented by the market.
According to mortgage broker Private Finance, the average borrower is paying £104 per month less than they would have for the same mortgage in 2008, with average monthly payments falling from £804 to £700.
Whilst house prices have risen at a higher rate than wages over the last 20 years, Private Finance is insisting that once the initial payment is made on a property, monthly repayments are broadly in line with the same levels seen 20 years ago.
“News of the UK property market’s affordability crisis is never far from the headlines,” offered Shaun Church, director at Private Finance. “What we often fail to acknowledge, however, is that thanks to falling rates, those with a mortgage today are in a similar – if not better – position than their predecessors, who owned property at a time when housing was considered vastly less expensive”.
“Homeownership can be attainable. Those in a position to buy should shop around for the best rates on the market, to ensure they capitalise on the incredibly competitive rates currently on offer. Borrowers should also consider locking into these with a longer fixed term, to cushion themselves against any further rate rises and keep the monthly cost of ownership low for as long as possible.”
If you are considering buying a property this spring, contact your local Thorgills team today.