Independent Financial Adviser
Patrick Goddard gives his view on the current market.Economic fundamentals (i.e. the strength of the general economy and the jobs market along with the Help To Buy' scheme and the stamp duty reforms) all combine to create an environment that encourages demand for housing and the confidence to borrow.
There is continuing demand and limited supply - we have not been building enough houses for many years now, and this is most likely to have an upward effect on house prices.
As people clamour to get in the market or move up-market, the increase in prices is driven yet further, as is the demand for mortgage borrowing.
This overview is evidenced by the latest Council of Mortgage
Lenders housing commentary which reports gross mortgage lending in March at 21%
higher than in February. As wages
inflation continues to outstrip price inflation and confidence is further
encouraged by continuing low interest rates, so this upward trend is expected
to continue.
So what does all this mean for individuals?
