We’ve heard recently about consumer confidence growing and now leading property website Rightmove has provided their insight into the changing property market. Rightmove is anticipating that property prices could rise by 8% next year as demand exceeds supply.
Across England and Wales, the property website expects prices to increase next year by an average of 6-8% compared to 2013. During 2012, the average house price increased by 5.4% according to Rightmove.
Rightmove director and housing market analyst, Miles Shipside, said,
“There’s a listing gap to fill. While sales transactions are up 13% so far in 2013, the number of newly listed properties is only up by 2%,”
Rightmove went onto explain that cities like Leeds, Manchester and York would be popular, with London expected to increase again too.
As Rightmove release their statistics about property prices expected to increase, there is also unrest among homeowners.
A poll by the Building Societies Association, which surveys 2,000 people, found that 27% of people fear the base rate increasing. The results also confirmed that consumers are more worried now, compared to three months ago, about their mortgage repayments.
As interest rates have remained low, many people have benefited from a lower than expected repayment to their mortgage. This was made possible by the Bank of England governor. However, as the economy continues to recover, the governor Mark Carney has enforced his intention to increase the interest rates once unemployment falls below 7%. This could increase the average mortgage significantly and cause problems for consumers.
It’s for this reason that a financial help is imperative and consumers should seek mortgage advice. With the right help from a financial expert, consumers can get help to buy their property or check whether there is a more affordable option to repay a mortgage.
As demand continues to grow for property, financial planners will become vital to supporting consumers with their property needs.