Affordable Opportunities: London Housing Market on the Rise
British first-time home buyers will see improved affordability as house prices rise slower than expected, influenced by government policy and lower borrowing costs. Wage growth and mortgage improvements are encouraging homeownership. However, potential tax hikes and a cooling job market could impact available funds for buyers.
A recent Reuters poll indicates brighter days for first-time home buyers in the UK, projecting improved housing affordability over the next few years. This trend is especially pronounced in London, where price growth is expected to lag previous forecasts, although affordability may face challenges from potential tax hikes and a sluggish job market.
Over 90% of surveyed analysts expect purchasing affordability to increase, as strong wage growth and a better mortgage landscape entice prospective buyers. Marc Von Grundherr from Benham and Reeves notes that many previously hesitant buyers are now taking the plunge into homeownership.
The Bank of England's recent interest rate cuts are key in this trend, though future taxation policies could redirect funds away from buyers. Despite an anticipated tax increase from Finance Minister Rachel Reeves, the average home price is slated to rise modestly by 2.6% this year according to analysts, with even slower growth predicted in London.
Google News