According to a recent research, in 2015 the home prices rose almost £30,000, whereas the average salary in the UK was £2,000 below that figure. This fact means good news for those who were thinking of an equity release.
It seems that currently British homes earn more money than their owners. This has been caused by the shortage of available homes in the market, which has motivated an intense level of competition. Nowadays there are up to 12 buyers chasing every property that is put onto the market.
As a consequence, this is a great time to sell properties and to apply for an equity release. But, is it a good time to purchase?
If you have been reading recently our blog, you might be informed about the Government’s Help to Buy plans for first-time buyers. Also, Chancellor George Osbourne announced a few months ago other measures to solve the problem of the lack of homes in the market. You can read more about this here.
Although another solution would be to build more houses to relieve the pressure, that is something that is going at a slow pace. The most recent ONS construction output data showed that total housing output fell 1.6% until October 2015. Some experts claim that builders should receive more incentives, such as tax relief.
Luckily for the residents of Birmingham and West Midlands in general, there are many housing development plans in the region which will reduce the shortage of homes.
Nonetheless, the British property market is going to suffer a lot of changes in 2016. It is expected that the home prices will continue rising around a 9% along the year. These first months might be particularly active because many buy-to-let investors will want to complete their purchases before the 1st of April, when the 3% stamp duty surcharge for additional properties will be effective.
First-time buyers will have it difficult to compete with buy-to-let investors until April. From that month, we expect a dramatic reduction of the competition. What is more, instead of buying homes, landlords might start selling them, which will increase the number of properties available in the market.
We encourage potential vendors to take advantage of this time to get a great price for their home. As expert estate agents, in wlyp.co.uk we can help you. Contact us!