SiteSales Property Group, one of the leading residential property sales and development consultants in London and the South East has recently commented on the results that have been released by the Nationwide House Price Index. These figures were published by the Index on the 1st November and has shown that there has been little change in house prices in recent months.
Murray Smith, the Managing Director of SiteSales Property Group has commented on the Nationwide House Price Index Figures and has said that the lack of movement in housing prices appears to reflect stability in the housing market, however there are undercurrents of disquiet with buyer’s, agents and developers. In the latest report released by Halifax, buyers are thought to be very concerned at the moment, with good reason to be. The main concern for buyers is being able to raise deposits and mortgages with increasingly uncertain jobs markets as well as the significant size of the deposits needed at the moment.
It is thought that the lack of progress that has been seen in the EU negotiations is also having an impact on the growth ambitions for employers which could, alongside other concerns, be leading more and more people to rent. The price of housing is increasing and with the estimated deposit required at £60,000 to £100,000, potential buyers are struggling to meet the criteria to buy their own home. Nationwide has predicted that house price growth is at 2.5% per annum when considering a £300,000 house. This house therefore increases in price by £7,500 each year. As a result of this, the deposit required to buy this same house increases at the same rate, and by about £1,900 a year. Therefore, those who are saving up for a deposit will almost always need to save an extra £160 each month in order to keep up with the rise in housing prices.
As for the Government funded Help to Buy scheme, presented as the magical solution is unmentioned in a number of statistics and is seen by Murray Smith as the disguised villain assisting the increase in housing prices, helping a very small number and boosting development companies’ profits.
