Following on from the UK’s economic turndown, which caused the housing market to collapse, there are finally significant signs of improvement, bringing welcome news that the worst may well be over for the UK Property Market
Confirming that mortgage lending has now increased for the first time since 2007, the Council of Mortgage Lenders was recently able to report that the number of first-time buyers rose by some 12%, whilst the Royal Institution of Chartered Surveyors advised that they too were able to confirm a definite increase in the number of property sales.
Meanwhile, in an attempt to assist those starting off on the property ladder, initiatives such as the Funding for Lending Scheme – which was launched by the Bank of England – have certainly helped to boost the economy. T
his particular concept injected £60 billion on the understanding banks and building societies would, in return, approve lending to customers. The Council of Mortgage Lenders have been encouraged by this and reported that, generally speaking, first-time buyers are now finding it much easier to secure mortgages with deposits as low as 5%.
At a time when the Office for National Statistics was able to report that UK house prices rose by 3.3% last year, thus indicating more movement in the market, property website Rightmove also reported a 17% increase in annual profits.
Much of this, they claimed, was due to the government’s Help to Buy Scheme, which was launched last year. This initiative now offers four types of home ownership schemes, all of which aim to boost the housing market – Equity Loans, Help To Buy Mortgage Guarantees, Shared Ownership and New Buy.
These schemes can also assist anyone aged 55 and over or people with disabilities, who can apply for Home Ownership for People with Long-Term Disabilities (HOLD) when other available properties don’t meet their individual requirements, for example.
As part of their contribution towards the housing market recovery, Leicester City Council has not only looked at beneficial ways to address under-occupation with their “Easy Move Scheme”, but have also been awarded £7 million to build new council housing.
The council has pledged that the new accommodation will range from one-bedroom flats to five-bedroom family homes whilst also ensuring a significant number of these remain wheelchair-accessible.
Already managing over 22,000 properties across the city, the council will now be utilising the funding (otherwise known as the ‘Housing Pledge’) to help boost the local construction industry whilst also playing a greater role in meeting housing needs across Leicester. All homes will also be fully sustainable, making them both economical and efficient to manage.
Without doubt, such unprecedented attempts to address the UK’s economic downturn are already seeing positive results, which can only make for a more optimistic future in the housing market.
Keywest is one of Leicester’s leading estate and lettings agencies, to find out how we can assist you in the property market, please call 0116 254 4555 and our of our property team will be pleased to help.
