Thursday, April 26, 2007
Category:
Property
The latest Halifax House Price Index on regional house prices in the first quarter 2007 has shown that this is the first time that no town in the UK has an average house price of less than £100,000.
In the last house price index that came out at the end of 2006, Lochgelly in Fife was the only town in the UK where the average price was less than £100,000. Homeowners in Northern Ireland saw the average price rise above £200,000. This latest change brings Northern Ireland to being one of the most expensive parts of the UK, with only London, the South East and the South West having higher house prices. Factors boosting property prices in Northern Ireland are a strong local economy, high levels of immigration and high demand for properties from second homebuyers and buy to let investors in the Republic of Ireland.
The most rapid house price increases have been experienced by those homeowners living in Scotland, the South West and Wales. The smallest increases were seen by those living in the East Midlands and Yorkshire and the Humber. In the North West, the average house price broke through the £150,000 barrier. The North/south divide is said to have re-emerged over the last year with the most rapid price rises being in London, the South West and the South East as house price inflation has gone up in these regions.
Commenting, Martin Ellis, chief economist, said: "House prices continue to rise in a tight market but there are emerging signs that pressure on householders' finances, partly due to the rise in interest rates since last August, is dampening housing demand. Overall, house prices increased by 2.8% in 2007 Q1, well below the 4.2% rise in 2006 Q4. There is also evidence of reduced market activity. We expect the higher level of interest rates, negative real earnings growth and above inflation council tax bill increases to lead to slower house price growth over the coming months. Sound economic fundamentals and an ongoing shortage of housing supply will, however, continue to support house prices."
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Homeowners who would like to move house but are unable to move up the property ladder due to recent price hikes could consider improving their current property with a
secured loan. A personal secured loan could provide homeowners with the funds needed to finance projects to increase the size of their property, perhaps by extending to add extra bedrooms on the upper floors and a play room or bigger lounge on the ground floors. Other projects to increase property size which can be financed with a secured personal loan include loft conversions, basement conversions and conservatories. Finishing touches like redecorating and purchasing furniture may also be funded with a secured loan. One of many options, secured loans can usually be repaid over a term to suit borrowers from 5 to 25 years and are secured on homes.
