>> Sep 17, 2014
The property market has been the subject of debate ever since it began to help the UK out of recession. People often aspired to own their own homes in the UK, even before Margaret Thatcher’s policy of selling council houses to their tenants. There is a strong argument that the UK emerged from recession before the rest of Europe because of the popularity of London property with overseas investors and the knock-on effect that produced down through the property market.
First Time Initiative
The problem at the lower end of the market, where financial lending institutions sought larger deposits from home buyers, was that first time buyers were finding it difficult. A Government initiative was put in place to help and it was certainly a success. In the South East in particular there have always been openings for graduates setting out on a career. The demand for housing in the commuter belt towns of Essex, such as Colchester, existed for those people that could get mortgage approval.
The good news for people looking at property for sale in Colchester is that mortgage approvals have now reached the same monthly level that existed before the recession struck. The aid to first-time-buyers has reinforced the whole property market, so everyone is happy.
The figure was in excess of 30,000 last month, the best figures since a similar month back in 2007. The low point was in 2009 when monthly figures were around 8,500. This time it is hoped that the figures will be sustained. Interest rates remain low for the time being although they will begin to rise. It could mean that sales continue through the winter which is traditionally a quiet time in the property market.
Mortgage applicants can typically expect to spend 20% of their income on their mortgage repayments, down around 5% from the peak before the recession, though interest rate increases would see that rising slowly.
The new financial rules mean that a typical property sale is taking longer to complete than previously. Applications are being examined more closely. However, there are established estate agents which can help. They are only too happy themselves that the market has strengthened. If you are starting to view property you will get a good idea of what’s available by looking on a website that allows you to put in a location and then reveals what is currently on offer. It certainly does no harm registering with a good agent so that you can receive news whenever anything else becomes available.
There has always been demand for property close to London. The city is the hub of the national economy. It means that investing in property, through buying your own home, will produce a return in the medium term which is one of the prime reasons why UK people have always been keen on buying.