Housing prices continue to rise
According to Halifax housing prices were up by 9.7% in February compared with last years figures. As the demand for houses is greater that the number of homes on the market means it is pushing the prices up.
The three months leading up to February were up 3% compared to the previous three months. The annual rate of change was unchanged. However housing prices continue to rise at a robust pace which is driven by the uneven balance between supply and demand, there are signs that the supply situation may be improving. Increasing affordability issues, as house price increases continue to exceed wage growth, are likely to curb housing demand and cause the price growth the settle down.
According to Nationwide housing prices edge towards £200,000. Housing prices increased by 0.3% per cent month-on-month in January and the pace of price growth is said to increase even more over the next few months.
With house prices rising it seems almost impossible for first time buyers to even get a place on the property ladder. The government last October introduced a new Isa for first time buyers.
Key facts about the ‘Help to buy’ Isa (HTB Isa):
- You cannot open a HTB Isa with a friend. However if two people want to buy a property together they can use their bonuses together meaning they can get up to £6000 to go towards the purchase.
- You can only open one cash Isa per year. So if you have cash Isas from previous years you can then still go and open a HTB Isa. You will have to close down any Isas opened that year in order to open another Isa in the same year.
- You can open a HTB Isa until 2019 and all bonuses must be claimed by 2030
For advice or help on this call our Manchester offices to speak to a member of our team on 0800 020 9542 or email hello@JacRox.co.