UK Home Builders Seeing Possible Cause for Concern
Concern for the coming months is growing within the UK housebuilding sector as many data figures are pointing to possibly slower times in the near future. Along with the data of falling house purchase approvals during the month of September, home builders see possible overshadowing in the fact that the help to buy scheme will indeed stop at the conclusion of this year.
Home builders have seen growth in building starts since the help to buy scheme began. The scheme was created to assist those who did not have the required funds for a deposit on a home. Many first timers took advantage of the scheme and have since been able to get onto the first rung of the property ladder and start a life in their first home.
However, now the program is planned to stop at the end of the year and home builders see reason for concern. Mortgage approvals are falling and are expected to be weak for the short term, according to many close to the housing market.
As home builders are growing more aware of coming slower months, lenders are still quite busy taking care of borrowers looking to remortgage. Conditions are now prime to take advantage of deals which could lead to massive amounts of savings off the cost of a home mortgage. Interest rates are now at record low levels. Fixed deals are now able to provide protection in the long run for home owners concerned with a possible rise in interest rates.