UK house price growth increases by over 1% for first time in a year
In the year 2019 house prices rose by 1.4% according to the Nationwide. In December it was the first time in 12 months the annual price growth had increased by more than 1%. However, the uncertainty of Brexit could affect the housing market again in 2020.
Although the decrease in house price growth may be good news for many first-time buyers, statistics indicate that raising a house deposit still remains very challenging.
The Nationwide uses its own mortgage figures which said that house prices rose by 0.1% in December compared to November. This means that the average home is valued at £215,282.
However, despite the uncertainty in the economy high employment levels and relatively cheap mortgages has maintained demand in buying houses.
Jonathan Hopper, managing director of Garrington Property Finders said: “These are early days for a bruised and fragile market, but with plenty of pent-up demand and supply, price growth may quickly accelerate past 2019’s modest annual pace”
“The property market has entered 2020 on a positive note but all eyes will be on how the economy holds up as we exit the EU.”
Saving up enough money for a deposit
Saving up a deposit for a house is already tough enough for first-time buyers, therefore they will not want to see house prices soar in 2020. The Nationwide has said that saving for a house in the North of England and Scotland would take 5 years if they set aside 15% of their take home monthly pay. This compares to:
- Seven years in Wales and Northern Ireland
- Nearly eight years in the West Midlands
- Ten years in the South of England
- Fifteen years in London (according to the Nationwide)
Subsequently due to the pressure many are relying on family and friends for financial help.
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