A surge in the market come jan 2014

kindofaverage

Can I ask what people's opinions are on the following please. Are any future buyers waiting til next January to start looking at the older houses for sale. Currently help is available on the new builds but this is then open to all builds in January 2014. Thanks

gazzabboi

Personally I have just bought a new build because I prefer modern than character. But help to buy made no influence on my decision. If I was a buyer I would be wanting to buy now not wait. In Jan there will be too much competition.

thedalmeny

I'm not so sure how much of an impact 'Help To Buy' for the open market is going to make, since the conditions have not yet been released or finalized.

My personal feeling is they'll heavily restrict it, mainly as the new build component of it has done so well and the market is improving.

If they do leave it relatively open - i think house prices are going to go mental, they already seem to be rising due to the optimism of Jan 2014 and that Help To Buy for new builds has picked up pace.

I'm just glad i bought 3 months ago.

lessonlearned

If you have enough money buy now, the market is already heating up.

brit1234

If you want to buy an older property then surely you will be looking to buy before January (Octoberish) when all the sellers put their prices up. I just hope with almost everyone against the scheme the government will do a U Turn and scrap it.

Risking tax payers money to artificially boast already overvalued house prices higher is deeply irresponsible. Also it will assist foreign buyers and existing home owners to buy multiple properties leaving priced out first time buyers still homeless.

bristol_pilot

thedalmeny wrote: »

If they do leave it relatively open - i think house prices are going to go mental, they already seem to be rising due to the optimism of Jan 2014 and that Help To Buy for new builds has picked up pace.

I agree. There is huge pent-up demand, with the number of new households being formed each year vastly outstripping the number of new houses and it is still ridiculously cheap to borrow money. The main brake on the market has been the large deposits demanded by mortgage companies which mean that many financially sound people in good jobs but without substantial savings have not been able to get a mortgage. My sense it that this situation is about to end....and there will be another housing boom.

thedalmeny

brit1234 wrote: »

If you want to buy an older property then surely you will be looking to buy before January (Octoberish) when all the sellers put their prices up. I just hope with almost everyone against the scheme the government will do a U Turn and scrap it.

Risking tax payers money to artificially boast already overvalued house prices higher is deeply irresponsible. Also it will assist foreign buyers and existing home owners to buy multiple properties leaving priced out first time buyers still homeless.

People aren't against the scheme because it's flawed, for all intensive purposes 'Help To Buy' is doing exactly what it was designed to do.. Providing a boost to the housing market and offering far more value over the likes of NewBuy and previous schemes.

Some are essentially against it because it's distortion of the market by inflating pricing, also the long term implications of a government supported housing market if it goes beyond the original period (Like the U.S). In terms of the value it offers the buyer, it's very good providing you purchase in between it starting and the pricing frenzy.

It's also been pretty well publicized (with statements from Cameron himself) that you foreigners and people looking to secure a second home will not be able to take advantage of it.. So keep up.

I still stand by that come Jan 2014, the open market part will be far more restrictive to stop prices getting out of control.

Then again, it's not just help to buy that's going to contribute to house price increases in the next 1-2 years. With the money markets freeing up in general and rent rising almost constantly... The rather stagnant housing market was going to rebound eventually.

Turnbull2000

I think it's almost certain we'll see strongly rising prices between now and 2014. Although Help to Buy will help fuel price rises and confidence to an extent, the real game changer is a market price adjustment to Funding for Lending and BoE backed ultra-low mortgage rates.

In 2007, the average fixed rate was 5.75. In 2013, the average fixed rate is 2.5%. Using affordability criteria (which is now the norm), you can now borrow £245,000 at the same monthly repayments as £200,000 back in 2007. This now due to be priced into the market, as rates are almost certain to be suppressed to support property values for the rest of the decade.

If you're a betting man, put a few quid in house price growth exceeding 10% in 2014.

SG27

bristol_pilot wrote: »

I agree. There is huge pent-up demand, with the number of new households being formed each year vastly outstripping the number of new houses and it is still ridiculously cheap to borrow money. The main brake on the market has been the large deposits demanded by mortgage companies which mean that many financially sound people in good jobs but without substantial savings have not been able to get a mortgage. My sense it that this situation is about to end....and there will be another housing boom.

It's not deposits its prices. We couldn't afford the repayments on a high LTV mortgage so we saved up a bigger deposit. If we could afford higher repayments then saving the deposit wouldn't have been a problem.

WellKnownSid

Scotland is also waiting for 2014 but for different reasons... average prices are currently falling here despite quite positive economic news.

I cannot see any big upward trends (outside of regional growth areas such as Aberdeen) until the uncertainty is over. Then things could really take off if we have to play catch-up.

geoffky

Interest rates......=Carnage in the market when they move, look at American bond yields..

The ten-year benchmark yield has reached 2.4% now which is up from more like 1.6% at the beginning of May.