House prices ‘to rise’ in next six months following introduction of Help to Buy
Average value of a home expected to rise as much as typical annual wage during the next six months, according to the latest Zoopla survey.
Almost nine out of 10 homeowners expect house prices to rise during the next six months by the same amount as the average wage.
It represents a record four year high, according to the latest Zoopla Housing Market Sentiment Survey.
It is the latest evidence of confidence in the housing market, with prices expected to rise by more than 5 per cent in the next six months. Based on an average house value in England of £250,000, it equates to £12,500.
The figures follow the introduction of the Government’s Help to Buy mortgage guarantee earlier this month, aimed at helping those with a small deposit to buy a home.
Lawrence Hall, of Zoopla.co.uk, said:
“While London remains the forerunner in homeowner optimism, confidence in the property market is surging across the whole UK.
Confidence is the bedrock for healthy property transactions but it can’t work in isolation. Fortunately, mortgage lending is on the rise, first-time buyers are returning to the market, and the second phase of the Help to Buy scheme should help boost confidence further across the country and not just in London. All of this bodes well for a healthier market and could lead to more and more transactions, which in turn will create a more sustainable market.”
The Government introduced the first phase of its Help to buy scheme in April this year. It helps those with a small deposit to buy a new build home by providing an loan that is interest free for five years.
The scheme is proving popular, with insurer NHBC announcing a 19 per cent increase in the number of new homes registered during the three months from July compared to a year earlier.
Richard Tamayo, NHBC commercial director, said:
“Our latest figures show a sustained broad-based recovery in the UK new housing market from an extremely low base. There is little doubt that Government schemes, such as the Help to Buy initiative, have significantly contributed to the growth seen throughout the course of this year.”