Demise in Property Values Has Created More Buying Opportunities
According to Halifax, due to house prices falling for the last three years, many prospective home buyers now have more of a choice in affordable housing. Especially for those with a budget of more than 250,000 pounds. This demographic can now afford property types in five of the ten biggest cities in the UK.
London is the only exception, as the average price for all property types is more than 250,000 pounds. The southern part of Britain is maintaining its strength within the market, as seven of the ten cities with the highest property value increase are located there. Housing economist at Halifax, Martin Ellis, commented on southern England, saying: "The higher performance of the housing market in southern England over the last three years reflects the stronger economic performance of this part of the country compared with the rest of the UK. Looking forward nationally, we expect limited movement in house prices overall this year but with the risks on the downside." He added: "It is important to remember that those buyers who bought their homes five or more years ago are likely to still have a healthy level of equity in their property. On the buyer side, monthly mortgage costs have now nearly halved from their peak in 2007, when 50% of a typical first-time buyer's income was devoted to paying their mortgage." Eight towns which saw the most significant demise in property values since 2007 are all located in the Northern region of the UK.