Buy To Let Property news in brief

Household costs have risen dramatically since 2004/05, a rise of £3.28 a day in running a home.

The Utility bills are blamed mostly for the rise as both gas and electricity have increased and so has the council tax bills and mortgage repayments have added to the rise. In fact the only item that seems to have been reduced is Household Insurance.

Mortgage payments now account for about 60% of the annual cost of running a house.

Edinburgh has had the largest rise in prices over the last ten years an increase of 173% since 1996. Glasgow, Dundee, Inverness, Aberdeen and Stirling all saw a rise over a 100% in 1996. In one year Aberdeen has had a growth rise of 26%.

Home-buyers are moving North and South West where they can find more affordable homes than in London and the South East. These seem to be the most sought after places and more people are searching for properties in these areas than anywhere else in the UK.

The fact that the North has a greater amount of land has meant more development taking place and they now make up 31% of all new homes being built.

In the North, properties can be as much as £40,000 lower than the UK average, because of this the North is now thriving.

Throughout the UK prices remain strong and the number of buyers has increased over the last two months.

The average house price rose by 0.7% in April. The growth in prices during April is down slightly as March saw a rise of 0.8%.

It would seem that the higher interest rates are making an impact on the market.

Two main reasons for house price growth are given as affordability and an above average supply of properties for sale. These are likely to slow down growth for the second half of the year.

Also, at least in the short term, HIP’s are probably going to influence the market. Estate Agents have been persuading clients to save money and beat the HIP’s by putting their homes on the market earlier than intended thus causing a shortage later in the year.

It is still thought that the most threat to price growth is the interest rate and further possible rises.

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