Welcome to BuyAssociation.co.uk

The facts about homebuying - Tim Betts, Taylor Wimpey

The facts about homebuying

Anyone keeping even the most cursory eye on the housing market cannot have failed to notice the huge number of media reports focusing on the impact of the recession over the past year or so.
Despite several successive months of house price increases, the doom-mongers continue to foretell that the next slump is around the corner – and with so much conflicting information and opinion out there, many would-be movers may be having a difficult time trying to make sense of it all.

So let’s cut through all the speculation and get to the hard evidence.

When you look at the facts and figures from the most trusted and reliable sources, it’s clear to see that the housing market was actually in a strong position in 2009 and looks set to build on this in 2010 – making now a great time to step on or move up the property ladder.

There’s no better indicator of the state of the market than house prices, and each of the ‘big three’ market analysts – the Nationwide and Halifax building societies and the Land Registry – recorded substantial rises in the value of the average home during the second half of last year.

According to these sources, the typical home added between £8,800 and £14,500 to its value after April 2009, an increase of between 5.8% and 9.4%. Yet at the same time, house prices remain significantly lower than at the property market’s previous peak in January 2008 – good news for buyers seeking great value and, in particular, those looking to purchase a home for the first time.

For first-time buyers, the outlook for this year appears increasingly rosy. Research published in the Halifax First-Time Buyer Annual Review shows that home affordability for average wage-earners has risen more than six-fold since 2007.

Mortgage picture improving

It’s true that 2009 probably wasn’t the best year for British banks, and if you read the papers, you’d be forgiven for thinking that mortgages were as difficult to come by as hens’ teeth.

But again, the facts tell a different story.

The Bank of England reports that the number of mortgage approvals doubled over the last 12 months and net lending has now increased for the third month in a row, signalling an increase in activity in the housing market.

Meanwhile, the Council of Mortgage Lenders predicts that lending will increase dramatically, from £8 billion to £15 billion in the coming year, while heavyweight lenders Lloyds Banking Group and Santander have said that a wider range of mortgage deals allowing purchasers to secure a home with a deposit of just 10% is likely to become available over the next few months.

And anyone in the market for a mortgage will also benefit from the fact that interest rates have been held at an historic low of 0.5%, meaning home loans are much more affordable.

Making homebuying easier

Despite predictions that 2009 would be a difficult time for housebuilders, Taylor Wimpey enjoyed a successful year and witnessed confidence returning to the market as buyers took advantage of lower prices, record low interest rates and a host of incentives to make homebuying easy.

This year, we are continuing to offer some really attractive practical and money-saving schemes to our customers, including assistance with selling an existing property for current homeowners and help with deposits, legal fees and stamp duty for first-time buyers.

Some Taylor Wimpey developments are also offering the Easy Start initiative, which allows purchasers to secure their new home for only 85% of the price, with the remainder paid for with a 10-year, interest-free loan from the housebuilder.

A clear message

The truth about the housing market is there are plenty of reasons to invest in a brand new home, whatever your situation.

Property is as reliable an investment as it ever has been, while lower prices, the increasing availability of good-value mortgages and rock-bottom interest rates put owning a home or stepping up the ladder within easy reach.

For me, the message is clear – ignore the negativity and the doom and gloom, arm yourself with the facts and make 2010 the year you make your move.

It could be the best decision you ever make.

Tim Betts

Tim Betts is Sales and Marketing Director for Taylor Wimpey West London, which has new homes developments in Berkshire, Buckinghamshire, Hampshire, Middlesex and Surrey. For further information, call Taylor Wimpey West London on 01256 745203 or visit www.taylorwimpey.co.uk

More pages

Page 1: The facts about homebuying

Advertise Your English Rental Property simple, effective and affordable marketing online!

Secure, cash-positive UK property investment Fully tenanted for 2011/2012 and with yields up to 8 per cent

UK Investment property from just £34,500 High-quality student rooms in an emerging market with 10% net yield guaranteed

UK property insurance from intasure - Click here for great deals and up to 40% risk related discount on UK & overseas insurance

All you need for a beautiful bathroom - at affordable prices

22.5 per cent annualised returns Dedicated student accommodation property investment with low entry levels and deposit protection