August Home Prices Rise in UK Housing Market
In what seems to be an economic uptick, the UK housing market is showing more increases in value, with August figures up 0.6 percent nationwide.
Buyer confidence is returning to the marketplace with a number of factors in play. Many first-time buyers are trying their hand at the UK housing market thanks to government lending promotions such as Funding for Lending and Help to Buy.
Employment has also made a comeback, boosting the economy at a necessary time. This 0.6 percent increase to home values in August is quite small, though, especially compared to the 3.5 percent increase from the previous year's figure. As far as quarterly trends were concerned, a 1.4 percent increase represents the highest quarterly gain since mid-2010.
First-time buyers made up 45 percent of the home loans sector in the second quarter of this year, mainly due to government lending schemes. This accounts for the largest first-time buyer loan measure since record-keeping began in 2005.
As demand continues to rise with values, affordability decreases, which is also a common theme in the current US housing market. Solutions to these supply issues include increased new home construction, which is up 33 percent in the second quarter compared to 2012 figures. This, however, is still far short of the necessary numbers to get UK housing market back in line.
The remaining months of the year are projected to see similar growth trends with appreciating values and increased sales figures. Are you seeing a lack of supply in your local housing market? Is this resulting in price hikes and over asking offers?
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Photo courtesy of Gillie’s Flickr