Thursday, November 12, 2009
Category:
Property
According to the Halifax House Price Index, there was a 1.2 percent increase in property prices in October, which marked the fourth consecutive monthly rise.
With regard to the average UK house price, the Index shows that this has risen by 2.9 percent since December of last year. However, it was found that property prices were 4.7 percent lower in October on an annual basis.
The Index highlights the fact that house prices have been forced upwards due to higher demand and supply shortages. With the recent rise in demand for housing, combined with the low number of available properties, property prices have increased during the past few months.
Further findings show that reduced interest rates have in turn lowered mortgage repayments, with monthly repayments being accountable for an estimated 21.5 percent of average gross household income for existing mortgage borrowers in October of this year. This represents the lowest proportion since mid 2004, with a notable peak of 26.9 percent in October of last year.
Finally, the Index also revealed that the number of mortgages approved for the purpose of purchasing a property increased in September, for the tenth consecutive month on a seasonally adjusted basis. In fact, approvals were reported to be 68 percent higher than in September 2008, but 44 percent lower than in September 2007.
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Homeowners who have just moved into a new property, but do not have the funds required to make essential updates or to put their personal stamp on it, could consider taking out a
secured loan. A secured loan for home improvements could allow the borrower to embark upon an array of projects in and around their new property. For example, if the roof happens to be in a state of disrepair, this could be replaced along with any draughty doors and windows. Additional living space could also be funded with a secured loan for home improvements, by means of an extension or conservatory, and the house could be completely re-decorated to suit the borrower’s tastes.
