been 7 years when house prices have fallen – mainly due to economic factors such as sharp increases in interest rates.
What’s the average price of a house in the UK? The price of a house in the UK depends on so many factors, not least the area with houses in the South tending to be much more expensive. In a February 2017 report, ONS calculated that the average price of a entry-level property was £198,000 with prices in the capital averaging £423,000.
How much did the 2008 economic downturn affect the housing market? The number of properties sold in 2009 (when the downturn was felt by the average consumer) slumped to 0.86 million – compared to the peak of 1.67 million sales in 2006. (Figures supplied by ONS)
THE HOUSING SITUATION SINCE 2009 Further regulations since April 2014 have meant that those applying for a mortgage come under greater scrutiny; mortgage providers must conduct a full affordability assessment of potential mortgagees concentrating on both income and outgoings. This tightening up of regulations has hit first-time buyers particularly hard especially young people.
Further regulations since April 2014 have meant that those applying for a mortgage come under greater scrutiny.
More and more young people are choosing -or perhaps being forced – to live at home with their parents because they can’t afford and/or can’t find property to rent or because they’re saving money for the deposit on their first home.
This difficulty has been recognised by the government, which has started a number of schemes which will help people get a foot on the property ladder or enable them to purchase new builds (and thereby help the construction industry after long periods of stagnation).
Summary:
In the 1990s banks increased their share of the mortgage market while increased demand pushed up house prices.
The 2008 economic downturn made mortgages less accessible whilst lack of social housing made accommodation more difficult to find and more expensive in the private sector as well.
The credit crunch affected many mortgage providers and led to a slump – both in house prices but also in the construction industry.
Since April 2014 checks of potential mortgagees are more stringent, which has particularly affected young first-time buyers who often continue to live with their parents as a result. Government-run schemes are trying to address the problem by offering help for those who aspire to their own home.
FUTURE CHALLENGES FOR HOUSING IN THE UK It’s quite impossible for anyone to predict with certainty what will happen in the future about the housing market since it depends on a number of variables including the country’s economic performance, which political party is in power and changes in society.
The proportion of single-occupancy dwellings continues to increase, due to later marriages and house purchases before marriage.
However, there are a number of challenges on the horizon. The first is the question of population. Immigration and an ageing population will continue to put a strain on the available housing stock. Closely connected to this is the changes in society. The proportion of single-occupancy dwellings continues to increase, fuelled by such factors as later marriages and house purchases before marriage. This decrease in the size of households will have an importance impact on the demand for housing in the future.
Another problem which is soon to reach crisis point is the number of interest-only mortgages. These were advertised in the 1990s as an easy way to make the most of the property boom. Some of the first are due to expire in 2020 when their homeowners will have to pay back the capital that they owe as a lump sum. Unfortunately, the FCA estimate that of these 600,000 mortgagees, only half have made provision to pay the debt back. The other half will possibly rely on putting their homes on the market and down-sizing. What the effect of a flood of houses being put on the market will do to house prices is anyone’s guess and that will only the first wave of interest-only mortgages.
On this site formerly stood The Golden Cross Inn the proprietor of which Mr Richard Ketley founded in or before 1775 the first known building society in the world. This plaque was presented to the City of Birmingham by the International Union of Building Societies and Savings and Loan Associations. President Mr. Morton Bodfish and unveiled by the right worshipful the Lord Mayor of Birmingham Alderman John Joseph Grogan M.B.B. J.P. 28th March 1958
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THE MIDLANDS PROPERT Y GUIDE MONE YWATCH F INANCE
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