The UK property market is displaying all the signs that indicate that it is recovering from the traumatic housing market crash caused by the economic crisis that impacted the European economy. According to housing industry experts, the prices of homes have been consistently increasing over the past several months since early 2013. In addition, there has been an increase in the amount of buy-to-let home mortgages approved and consumer spending has increased while the number of loan requests for home improvements have decreased significantly indicating a more educated homeowner.
One Sign Of Property Market Improvement: Increase In Housing Prices
In recent years, an increase in housing prices was generally reserved only to the areas of London and parts of the South East such as Oxford. However, industry experts have noticed that home prices throughout all of the UK have increased, especially in some of the areas that suffered the largest loss of equity in their homes and were devastated by unemployment as businesses either shut down or moved out of the area or country. In various parts of the UK housing prices are increasing and this trend has been consistent for several months.
Second Indicator Of Property Market Recovery: An Increase In The Number Of Buy-to-Let Mortgages
In 2013 there has been an increase of over 15% in the volume of these types of loans when compared to those given in 2012. When one scrutinises the amount of money that these Buy-to-Let mortgages are being approved for in 2013 and they contrast it with the 2012 totals it becomes apparent that there is an increase in dollar amounts that is greater than thirty percent.
The only way for such an increase in the number of these types of mortgages being approved is if people can demonstrate that they have stable employment and they are able to handle the financial loads that come with these financial instruments.
Another indicator that the property market is improving can be seen through the number of home improvement loans UK citizens are accessing.
Third Sign Of UK Property Market Recovery: Financial Restraint Of Homeowners
UK citizens are finding more full-time work and are spending more at stores as is shown through various market figures. However, the average UK homeowner is focusing more on paying down their home debts and not accessing home improvement loans as they did prior to the property crash.
Many homeowners before the property market crash would acquire large bank loans, which were spent on the improvement of their homes. The current housing industry numbers demonstrate a vastly different pattern. In 2013 homeowners have been directing more of their money to the repayment of their loans and reduce their debt loads rather than taking money they don’t have to improve their homes. This financial behaviour is indicative of homeowners more focused on reducing their debt and is illustrative of a more responsible and educated homeowner.
A more educated homeowner is a boon to the UK property market because they will be less likely to panic when they hear of economic problems that are occurring in other countries nor will they be operating in a manner that will likely lead to them being constrained by their financial debts.
The UK property market is recovering in a manner that will help current homeowners and investors as the values of their property are increasing in 2013. It is highly unlikely that this trend will stop in the near future thus allowing homeowners who are looking to sell their homes fast in order to do so, in addition to borrowing and real estate investment opportunities.
Remember, before buying or elling a property, you should always seek the advice of a lawyer. We recommend these guys here: http://www.bestlondonlawyers.co.uk.