As the election comes around people traditionally slow their searches for new properties, in a hope to not overexposing themselves to possible new policies, which could leave them struggling once the new government has been decided. One such new policy could be an agreement to hold the interest rates at a current low level, this will of course be beneficial to anyone looking to trade up in the housing market and possibly leverage themselves further against the value of their property, if interest rates were due to increase this could be a problem for would be house buyers as they may struggle to match the repayments.
On the other hand it is normal in Britain for the property market to have somewhat of an upsurge in interest during spring, this can be attributed, partly to the sun making house hunting a more pleasant experience and also, to the budget which is often announced late in March and provides more certainty to market conditions.
It is good to see this news, as now the new government has been decided and are getting to work, we would expect the current trend in new house buyers and a slow increase in house prices to continue, as people are given more certainty in the position they will be in, come the next few months. There are a few interesting policies being taken into government, it will be interesting to see what the Lib-Dems have in store with the new “safe start” mortgage, designed to stop new buyers slipping into negative equity.
News of the increase in prices and sales came from RICS this month, as they published their latest monthly survey of some 245 members of the RICS who work as estate agents.
Fresh Invest is a property investment company with the aim of maximising our investor’s funds whilst minimising their risk. For more information see www.freshinvest.co.uk or phone 0800 043 69 56.Back to news