The typical price of a home in the UK climbed by 0.2% in February, according to Nationwide’s House Price Index, bringing average property prices to £162,638, up from a figure of £162,245 in January.
Unsurprisingly, the escalating cost of purchasing a property has resulted in a continued downward trend in home ownership, with the rate of home ownership falling from an all-time high of 70.9% in 2003 to 65.3% in 2012.
The latest figures from the English Housing Survey reveal the difficulty that consumers are having in getting onto the first rung of the property ladder, with just 20% of people in social housing and 59% of those in the private rental expecting to buy a home in the foreseeable future.
Despite the data revealing a negative outlook for would-be buyers, Robert Gardner, Nationwide’s Chief Economist argues that there may be brighter times ahead. He said:
“For the second month in a row UK house prices remained flat in annual terms, maintaining the trend of broad stability that has been evident over the past two years.
“While activity in the housing market remains subdued by historic standards, there have been tentative signs of a pick up in recent months. The Funding for Lending Scheme has achieved some success in bringing down mortgage rates, with encouraging signs of an improvement in credit availability.”
However, Nationwide’s research comes in the wake of the latest figures from the British Bankers Association (BBA) which revealed that the number of mortgage approvals in the UK fell by 14% between December and January, despite hopes that the government’s Funding for Lending Scheme (FLS) would improve the lending landscape for would-be buyers.
The data highlighted that gross mortgage lending fell from a figure of £8.4 billion in December to £7.7 billion in January, with the average house purchase also plummeting over the same period, down from £152,000 to £145,300.
Responsible lenders offer unsecured personal loans which are available to give you access to the funds you may require. Of course, no such loan should be taken lightly, and as with any form of borrowing it is important that you are able to meet repayments.