New research has shown that those who are searching for competitive home loans saw the average cost of residential properties in the UK fall slightly last month.
According to the latest Halifax House Price Index published last week (September 7th), prospective mortgage holders will now have to pay an average of £161,743 to purchase a home.
This shows us that there has been a 1.2 per cent decline when we compare August to July, as well as there being a 2.6 per cent drop against the corresponding period last year.
Nevertheless, those eager to sell their home in the near future may be uplifted to know that this figure is even more positive in terms of the housing market’s short-term outlook, as the quarterly change in prices has gone up one per cent.
This comes after Ben Wilkie, editor of What Mortgage, insisted that tracker mortgages attached to the base rate – which has been maintained at 0.5 per cent for the last 29 months in a row – may not be the most cost-effective option at present, despite the prospect of low interest rates.
Mr Wilkie went on to explain that many of the available fixed rate counterparts are “priced competitively” on the basis that, generally, homeowners will not be anticipating rapid interest increases in the near future.
The expert finished by concluding that personal circumstances should be taken into account when deciding what kind of home loan to take out, with those on a “very set budget” more likely to steer toward fixed rate loans over their tracker counterparts.
Further proving that the housing market is thriving; it appears that mortgage deals look set to remain very popular in London for the near future, thanks partially to a strong level of global demand.
This is the opinion of the chief executive at London Central Portfolio, Naomi Heaton, who has suggested that the home loan market in the capital will continue to be active for the foreseeable future as the city remains one of the “most desirable destinations in the world”.
Ms Heaton explained that various issues around the world – the economic health issues across Europe and the US being one example – have helped to portray residential property in London as being “more appealing than usual to foreign investors”.
She went on to say, “few people doubt that the long-term outlook in London central is anything other than bright.”
These comments came after the publication of a report by WA Ellis, which demonstrated that the number of lettings in the capital has increased 50 per cent year-on-year during August.