The housing market has been unpredictable over the course of the pandemic, but there are certain trends that have emerged. For one, there has been a major increase in the price of properties as a result of a lack of supply on the market. Luckily, even though house prices are hitting record highs, average mortgage payments haven’t followed the same track because mortgage rates have plummeted.
This article does not constitute advice. Professional advice should be taken prior to acting on any part of it. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
It is important to understand the value of your home and the equity your property holds so you can effectively plan for the future.
According to the latest research from Zoopla, the total value of British homes has skyrocketed by 20% since 2016. This means that the value of almost 12 million homes have increased by the national average of £49,000 or more in just five years.
Supply vs. Demand
Rock-bottom mortgage rates in recent years undoubtedly contributed to house price growth. And the coronavirus pandemic had the unexpected effect of increasing buyer demand as hopeful homebuyers experienced priority shifts thanks to lockdown restrictions. Unfortunately, this increased demand was met by a limited supply of homes available, adding fuel to house price growth.
The good news for sellers is that this increase in property prices means you could be sitting on a goldmine. If you are thinking of moving, the sale of your home could net you more money than you thought. Keep in mind that house prices across the board have increased so be prepared to pay more for a new property if you are looking. Another option, if you don’t plan to move, is to see if you qualify for a cheaper mortgage.
Regional analysis
Zoopla’s research highlighted that homes in the South East region of the country had seen the greatest increase in value over the last five years, rising collectively by £294 billion. London alone saw £214 billion added to their homes over the same period, 13% of all growth, which makes sense since it is the most valuable city in England and home to a quarter of Britain’s housing wealth.
National outlook
After the South East, with the second highest value of homes at £1.7 trillion, the East of England follows at £1 trillion. Homes in the North East however came in worth £197 billion collectively, with homes in Wales being valued at £308 billion. On a granular level, more than two-thirds of homes in 53 of the nation’s 367 local authority areas have risen by more than £49,000 since 2016.
Should you take advantage of the state of the market?
You might not be aware, but you could be sitting on a goldmine as the prices of houses have skyrocketed so much in the last few years. You could take advantage of this trend and sell your home for an unexpectedly large profit or even remortgage and save on monthly mortgage repayments. No matter what you do, we’re here to help. To get started on the mortgage application process, get in touch with us today.
Need help to find the right mortgage for you?
Mortgages | Buy to Let | Property | Mortgage Planning |
Dental & Medical Financial Services have been helping doctors and dentists with finding low-cost mortgages for your home and investment properties for over 25 years.
Find a Mortgage using our online Mortgage Finder Tool
Call Dental & Medical Financial Services to discuss your options.