With all the uncertainty surrounding Brexit over the past three years, it’s a relief to see that 2020 is promising stability across the housing market. Linear Financial Solutions MD, David Walton looks at what’s in store for the year ahead.
It’s sad to read that over 40% of 18-39-year-olds admit that their property decisions were affected by Brexit.
But house price growth in December was the biggest in 2019 and Rightmove have just released figures that January was extremely busy, with a 12% upsurge on sales agreed by estate agents compared to last year – and the highest since July 2017.
2020 is looking promising, thanks to the current conditions of low interest rates, competitive mortgage deals, and increasing demand from potential buyers.
With house prices rising nearly seven times faster than people’s income, it’s thought that just 1-in-4 young adults will own a home, compared to 2-in-3 20 years ago. However, with over 35-thousand new first-time buyer mortgages completed in the summer of 2019, we’re hopeful that the number of first-time homeowners entering the market will continue to increase.
Thankfully, the Prime Minister plans to bring in a new mortgage with long-term fixed rates. Once again this means renters only need a 5% deposit to buy their first home. I would also not be surprised to see the return of the 100% mortgage before the end of the year – currently 95% of mortgages are becoming more readily available.
First time buyers can also gain access to The Help-to-Buy Equity scheme until 2023. I hope that this will go some way to combat the withdrawal of Help to Buy ISA in November 2019.
But it’s widely argued that more needs to be done to make homeownership accessible for the younger generation.Recent research shows that 64% of 18-34 year-olds believe that homeownership schemes are too complicated to understand.
Of course, that is why you should seek advice from a Mortgage Broker, preferably a Linear mortgage advisor!