Buying a new home is as challenging a task as it is audacious. Everybody want to own a home of their own where they are not up to constant worries of being kicked out. However, it can get really difficult when houses become limited commodities in the market. The prices tend to shoot up due to the increased demand without equal supply. This has been the trend in the UK with further increases predicted in property prices in York in 2014. Therefore, it is important that you know your way around such a scenario; this article will help you do that.
Reasons for the increment
Prices of property surged up immensely since the commencement of the ‘help to buy’ scheme. This is a two pronged system that seeks to help people buy homes as well as help financers of mortgages recover their money.
The scheme encourages buyers to buy new homes by only depositing five percent of the property’s value. They then take up a mortgage of up to 75 percent. The government then covers the other 20 percent in equity loans. This has made it very easy to purchase a home for anybody who is working.
The effect being that it puts pressure on the market considering the high demand for houses but there is no supply. This is because this scheme only targets new houses not the old ones. The prices therefore have shot up, but on the brighter side, the construction industry is having a boom in business thereby reducing unemployment.
Hotspot area have been identified in different parts of UK. York is one of the towns in Northern UK that could experience this rise in prices.
It is therefore important that you plan very well if you are looking to buy property in York considering the predictions made in property UK. You could end up paying more than necessary just because you think in is convenient to pay 5% deposit and be financed the other 95%.
Be advised to look for better deals if you are looking for a house in York this 2014. You can visit the offices of Bridgefords Estate Agents York, where you are sure to get a lot of good homes at affordable and fair prices.