2011 proved to be another turbulent year for the UK’s property market. There are conflicting opinions as to whether average house prices rose or fell; one high street lender reported a decrease of 1.3% whereas another found that there had been a 1% increase. What, however, can be agreed is that prices did not succumb to the pressure of a worsening economic climate.
Even as the dark days of winter set in, rays of promising news were filtering in with the number of completed house sales rising to their highest levels in October and November. Halifax went so far as to report that the number of sales in November were the highest since December 2009.
So, does this promising end to 2011 bode well for 2012?
Rather surprisingly, perhaps, it has been reported that property for first time buyers is more affordable now than at any point in almost a decade. However, the lucky few to whom this applies must strike the right balance between being able to provide a substantial deposit and intending to buy a property in a part of the UK where “the price is right”. Not so surprisingly, the traditional north-south divide is as much in evidence as ever with none of the London boroughs being classed as affordable for first time buyers.
During 2012 several events will mark a year of mixed fortunes for first time buyers. 24th March will see the end of Stamp Duty relief on property purchases worth £250,000 or less. On the other hand would-be buyers with small deposits should be able to take advantage of the Government’s new-build mortgage indemnity scheme. This welcome measure is expected to boost the number of 95% loans available when it starts in April.
At the opposite end of the market, a growth of up to 5% for prime central London is forecast, with a number of Banks indicating that they plan to lend more to wealthy borrowers in 2012 than they did in 2011.
Whether you are a first time buyer wanting to take advantage of the Stamp Duty relief before 24 March, an investor looking to capitalise on the strengthening private rental market or a private seller or buyer we can help you with your transaction so please contact Ann-Marie Lock on 020 7288 4764 or Email Me