House prices up 1.5 per cent in March, Halifax says
The UK's biggest mortgage lender reveals 'new high' in average house price
HOUSE prices have increased by 1.5 per cent over the last month as the market begins to show signs of growth, according to Halifax.
Currently the UK's biggest mortgage lender, Halifax data shows that the average house price in March was £227,871 - which is the highest recorded price.
Despite a ''new high'' in the average house price, the growth follows a small 0.5 per cent rise in February.
The figures also show there has only been an overall 2.7 per cent increase from this time last year.
Managing Director for Halifax, Russell Galley - who claims Mortgages in the UK are at their ''most affordable'' level in a decade - said: “House prices in the three months to March were largely unchanged compared with the previous quarter.''
How to get help buying a house
THERE are several government schemes available to help you get on the housing ladder.
- Help to Buy loan: This scheme is for those who have a 5 per cent deposit, and is only available on new-build properties that are worth less than £600,000. The government lends you up to 20 per cent of the property value (interest-free for the first five years) which gives you access to cheaper mortgages. You will need to pay this back at the end of the mortgage or when you sell.
- Starter Homes: First-time buyers under the age of 40 can access this new scheme. You’ll get a 20 per cent discount on the market value of the property (new-build only) but you cannot sell or let the property for five years after you buy it.
- Shared ownership: This scheme is available to non-homeowners who earn £80,000 a year or less (£90,000 in London). People can buy a share of a home from a housing association and continue to rent the remainder. Buyers will need a ten per cent deposit as well as money to cover stamp duty and other fees. You’ll also need to find a mortgage lender that is willing to lend on shared ownership properties
He continued: ''The annual rate of growth continues to be in a narrow range of under 3 per cent though the average price of £227,871 is a new high.''
In the coming months he also predicted price growth to remain close to 3 per cent, he said: ''Despite the very positive factors of continuing low mortgage rates, affordability levels and a robust labour market.''
Echoing Halifax's growth expectations, founder and CEO of online estate agency, , Russell Quirk, said on the increase: "The current affordability of mortgages, coupled with a reduction in unemployment and an insufficient level of housing stock, will continue to stimulate the market and price growth should exceed wider predictions over the latter part of the year."
Earlier this year Nationwide Robert Gardner, Nationwide's chief economist, predicted more ''subdued'' growth.
Nearly 10 per cent more people bought their first home in 2017 than in 2016 - but that doesn't mean it's an easy time to be a first-time buyer.
Before the latest price hike first-time buyers spent on average £212,000 on their first home - but most Londoners can expect to pay nearly double that to get on the property ladder.
As the market changes, we have rounded up the best ways to get good mortgage deals - and get accepted.
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