Last month I was able to tell you that things were looking up in the housing market – with rates being cut and more mortgage offers being made available. And this month I can report some more ground-breaking news: house prices have hit an all time record high in the month of April. The Rightmove House Price Index found that average asking prices rose by 2.1% month-on-month to reach £244,706.
What does this mean?
A revival in the housing market is a key indicator of economic growth (or in this instance, recovery). If house prices show some stability then we would usually see a follow-on in consumer confidence which will then lead to more properties becoming available and mortgage companies becoming more competitive to secure the increase in business. If you own your own home then this is all good news as your assets are increasing in value and if you were looking to move, there would be more choice and better mortgage products available.
Are house prices going to continue to climb?
A recent forecast from the Centre for Economics and Business Research suggested that the cost of the average home could jump by nearly £50,000 over the next five years. Location is increasingly important, with pockets within London and the South East (including Brighton and Hove) consistently outperforming other regions.
Interested in something you’ve read here?
Maybe you’re looking to sell your existing property or are wondering whether now might be a good time to move? Or maybe you’ve heard about the clamp down on interest-only mortgages in the press and you’re wondering how that might affect you. We are always available to offer advice. Don’t hesitate to call my team on 01273 736536 and we will do everything we can help.