UK Housing Up By One Percent
In the month of October, UK housing continued to increase in value by 1 percent. This increase represents steady growth in value and a 5.8 percent increase from the previous year.
Several measures continue to promote growth and lending for UK housing, like Help to Buy and Funding for Lending schemes along with a healthier job market and economy. Housing values are rising at the same time as new and first-time buyers are entering the market, which is a positive combination for the UK housing market. However, inventory is still below demand, which could become a problem for affordability at the current rate.
Mortgage rates are at nearly the lowest levels of all-time, which is great for lending but we are still seeing home values at 7 percent below peak values in 2007. Lending affordability will certainly help return to this level, but only if new affordable housing continues to be built.
As is with any market which is steadily rising, there are concerns of a housing bubble. This is most prominent in regions like London and the South East where prices are at a premium. The general consensus shows housing continuing to rise along with values and affordability through 2013 and into 2014. The first quarter of 2014 should bring some slowing, but continued normalization to the UK housing market.
What do you make of this 1 percent increase to UK housing values? Do you see these trends in your housing market? What is your take on current mortgage rates?
Let us know your thoughts and ideas in the comment section below. We welcome a dialogue.
Photo Courtesy of Florlewis’s Flickr