Those looking for a new home may be struggling, according to estate agent Jeremy Leaf.
According to a report from the Halifax, house prices have risen by 9.7% during the quarter ending October 2015, in comparison to 2014’s prices. From September to October, the average house price rose to £205,240, an increase of 1.1%. According to Martin Ellis, housing economist for the Halifax, demand for housing has risen in 2015 due to the improved economy, household finances, combined with low mortgage interest rates. As demand continues to rise, sales levels are also increasing, although activity is restrained by the shortage of properties up for grabs. Ellis believes that house prices will continue to rise over the next few months, due to the shortage of properties for sale.
Jeremy Leaf, estate agent and previously the chairman of the Royal Institute of Chartered Surveyors, said that the data was a concern as it suggests that house prices will continue to rise creating problems for first time buyers. If first time buyers experience more difficulties getting on to the property ladder, this could lead to problems for the housing market. Leaf added that although interest rates were low, first time buyers faced other challenges on entry to the housing market, and rising prices will add to those problems.
A number of first time buyers will consult with a professional mortgage adviser to obtain advice on how to secure the most suitable mortgage. The rising house prices could well be a significant factor and a CeMAP qualified adviser may be able to help.