House prices set to rise 17% by 2018
New report says UK house prices set to rise by 17% by 2018
National house prices will rise 17% during the next five years as the economic recovery gets underway, according to a new report published today by CBRE, the national property consultants.
The news follows an increase in optimism which has fed through to the national housing market, with mortgage approvals at their highest level since 2008, leading to more than 62,000 requests approved during August 2013.
The report says the market has been boosted by Help to Buy, low interest rates and improvements in the mortgage market. The first phase of Help to Buy has already delivered over 15,000 reservations since its launch in April this year.
Help to Buy is the Government-backed equity loan scheme that aims to make mortgages more readily available to those who cannot afford a large deposit.
Available to first-time buyers and people already on the property ladder looking to buy a brand new home, the Help to Buy scheme requires just a 5% deposit and a mortgage of up to 75% of the value of the property. The purchaser pays just 80% of the property price now, and the remaining 20% is provided by a Government equity loan. In England this is interest free for the first 5 years, and in Scotland it is interest free for the term of the loan which could make your monthly mortgage repayments lower.