House prices reach record high
Latest figures show that UK house prices have reached a record high – surpassing previous records set during the Pandemic. Adam Nanson from Your Mortgage Expert discusses what this means for homeowners and for affordability.
What is happening with house prices
“The latest Halifax House Price Index shows the average UK house price reached £293,999 in October which is higher than the previous peak set in June 2022. This is a 0.2% monthly increase and an annual rise of 3.9%*.
“If you are a homeowner, the fact that house prices have reached a record high might seem positive news as your investment continues to increase in value. The market has probably been boosted by lowering mortgage rates over the last few months, which help increase confidence in the market.
“Stamp Duty rules change at the start of April 2025. The market may be further boosted by buyers trying to complete on their transactions ahead of the new rules coming into effect.”
What does this mean for First Time Buyers
“With house prices continuing to rise, affordability remains an issue, especially for First Time Buyers. Figures show that the mortgage needed by a First Time Buyer and the Mortgage Loan they can actually access is currently short by more than £43,000 on average**.
“Whilst this might seem quite depressing, there are some options available for First Time Buyers to help you bridge the affordability gap.
“For example, one lender now offers up to 6 times in come with just a 5% deposit. Another has a product for First Time Buyers with zero deposit. There are also schemes such as the Shared Ownership scheme, the Forces Help to Buy Scheme and the Mortgage Guarantee Scheme.
“If you are thinking of buying a house for the first time, we would recommend you speak to a Mortgage Broker like Your Mortgage Expert. We’ll take the time to fully understand your personal situation and make recommendations for schemes that you can use to help you get your foot on the property ladder.
“We understand all the Government Schemes available and also know which products lenders have introduced to help with First Time Buyer affordability.
“We would urge First Time Buyers to act now if you are ready to buy. As we don’t know whether house prices will continue to rise nor do we know what is going to happen with mortgage rates moving forward.”
If you need any further advice, we would love to chat. Not only do we have access to the current deals on the market, some of which are not available on the high street directly. We also have extensive knowledge of all the current Government schemes designed to give you a helping hand.
By speaking to Your Mortgage Expert, you’ll get access to expert mortgage advice. We can help you work out how much you can afford to borrow, what your repayments would be and what type of mortgage is most suitable for your personal circumstances. And, if you need it, we can break down all the jargon so you understand whether to opt for a tracker mortgage, fixed rate mortgage or something more flexible.
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To speak to a member of the mortgage advice team about your mortgage ring Your Mortgage Expert now on 01722 322683. We are based in Salisbury but we can help you no matter where you live in the UK.