The 6% increase in house prices and wider range of prospective buyers encouraged sellers to put up their properties on the market after the accomplishment of the ‘Help to Buy’ programme.
Data showed by the Bank of England depicts that mortgage lending attained its highest point since the year 2008 and this is likely to present opportunities to existing homeowners who wants to advertise their properties.
By improving the access to home ownership, the increase in mortgage lending has also persuaded homeowners to list their properties on the market. The recognizable achievement of the Government’s programme, ‘Help to Buy’ scheme has also amplified the number of probable buyers competing for every property.
The increase in mortgage lending is good news for the market as well, as it will generate larger action and could result in more transactions being accomplished.
Homeowners moving into new properties observed that prices were increased by 5.8% while the value on properties for first-time buyers only improved by 3.8%. An evident look at these figures show that house value for existing homeowners moving into a new property escalated at a faster rate than the first time buyers.
This may mean that a homeowner who stayed in their house for a long time will notice a sluggish capital growth than a homeowner who has already upgraded the property ladder on the same time.
It is also essential that homeowners get customary valuations of their property. Being familiar with their property’s market value puts them in the strongest position as they can anticipate any gap and could then work accordingly.
Increasing property prices generate an incentive for existing homeowners to ascend the property ladder, as larger properties keep on outperforming lesser properties in terms of the increase in price range.
As homeowners grow older, they normally obtain higher incomes. This allows them to ascend the property ladder by buying bigger properties and profiting from quicker capital growth.
