The property market remains “resilient”, with the average house price increasing 0.4 per cent in each successive month, according to claims from Nationwide. The typical price of a property in November of this year was £165,798, 1.6 per cent higher than November of last year. The figures have been revealed following Government proposals to kick-start the housing market through the underwriting of mortgages for first-time homeowners.
Robert Gardner, a chief economist at Nationwide, cautioned that the forecast of slow growth within the economy is likely to influence the housing market over the coming years. Nationwide claimed that, regardless of the increase in property prices in November, the UK was experiencing an “extremely subdued” demand for houses, with low levels of housing transactions and mortgage application approvals in comparison to before the recession. Nationwide claimed that high levels of unemployment, slow income growth and a lack of consumer confidence had weighed down the property market and would continue to do so.
The Government has recently made public a mortgage indemnity scheme to aid first-time homeowners in purchasing newly built properties with a deposit of five per cent as opposed to the 20 per cent deposit regularly required by commercial lenders. The Government has called for more public land to be made available for property development and money has been set aside to ensure that vacant homes are brought back into use. There have also been proposals to help elderly individuals to release the equity from their existing properties.
Duncan Lewis’ conveyancing department aids first-time homeowners in making housing transactions.