In the past year, the fluctuating housing market has experienced something of a surprise upturn, putting behind memories of the end of the housing boom back in 2007, but the latest figures show that a new landmark has been reached. Results for June from property website Rightmove revealed that for the first time ever, the average price of a home in the UK topped £250,000.
The website found that the average property asking price was £252,798 in June, up by nearly £3,000 from the previous month, a 1.2% rise. Year-on-year, a 2.7% increase was recorded, which suggests that after some turbulence, the housing market is back on track in 2013. However, there were some massive regional variations, with homes in London and the South East proving more expensive.
Grim up north?
In the southern regions of the UK, house prices were typically far higher than the UK average. In London, Rightmove found that the average house would cost £515,243, while the South East asking price was £329,968. In the South East, prices rose by 1.4% in the past month, but the picture isn’t quite as rosy in other parts of the country.
In Yorkshire and Humberside, the average house price fell by 0.5% in June to a more modest £157,183. A smaller drop of 0.3% was recorded for the same period in the North, but the North West, comprising of Lancashire, Cheshire, Greater Manchester and Merseyside, experienced a comparatively large 1.7% rise.
Buyers experiencing more difficulties
In theory, higher house prices mean good news for people looking to sell their property, but that’s not necessarily the case. The main reason is that many people looking to get onto the property ladder, whatever region they may be in, cannot afford it. This means that many homeowners with valuable properties might not be able to sell straight away due to low demand.
Affordable mortgages are an issue that many prospective buyers will be confronted with. Low interest rates may make some products seem attractive, but getting a long-term deal may prove difficult. However, as a spokesperson from Yorkshire Building Society suggested, it’s possible to get a good fixed-rate mortgage:
“Borrowers have been showing an interest in longer term fixed rate mortgages, which is why the time was right for us to launched the 10-year fixed-rate mortgage which offers ‘borrowers long-term peace of mind. With so much uncertainty about the economy at home and abroad, borrowers tend to choose a fixed rate mortgage to make it easier to budget month to month”, they said.
Saving in more ways than one?
Even trying to save for a deposit might seemingly be beyond their means but Fixed-rate mortgages may be the answer to anyone who can afford to pay a deposit but doesn’t want to pay more than they bargained for every month in interest rates. Finding great value mortgages shouldn’t be a problem if you’re completely unsure of where to turn for a mortgage, but you need to find an affordable property first, which looks difficult!