Meet Luke Somerset, our Business Development Director here at Contractor Mortgages Made Easy. Luke delivers his first blog this month and looks at the housing marketing in a little detail.
Hello and welcome, my name is Luke Somerset, and I’m the Business Development Director here at Contractor Mortgages Made Easy.
So, the long Easter weekend is looming, and many contractors are planning to get out into the housing market, and find themselves a new home, or perhaps a first home.
There has been a lot of news around house prices in recent months, so what can you expect from the housing market? Well the rate of house price growth is starting to slow, but that doesn’t necessarily mean that house prices are dropping, far from it. They are still much going up, but the rate of growth is starting to abate.
Halifax reported that the annual increase in house prices has dropped from around 5.1% in February to around 3.8% in March. That’s driven largely by some Brexit uncertainty, having said that even some pessimistic predictions on house prices still expect to see around £50,000 increase in the average house price between now and 2021. So property is still a really great investment.
We are also expecting to see a bit of a shift in more of a buyers market appear towards the end of the year. There’s a big tax change in Buy to Let, many of you may be affected by that, and according to a recent survey by Axa, some 10% of landlords are expecting to have to sell part of their portfolio over the next couple of years, and a whopping 28% expect to have to sell their entire portfolio in order to cope with the tax changes.
That means more properties on the market, and ultimately creates a position where buyers can drive a much higher bargain for properties. In areas like London, that could be great, particularly for first time buyers, where just finding a decent first time buyer property can be a real struggle.
If there’s anything we can help with, please feel free to give us a call, look forward to seeing you next month.