Photograph by Diana Parkhouse
House prices rose by 3.1% in the first half of 2013 according to the Office of National Statistics.
This is the fastest house price rise since before the 2008 credit crunch, with every region in England and Wales seeing a rise. West Midlands and North East saw the greatest rise in activity, whilst London saw the greatest price rises. However, house prices fell in Scotland and Northern Ireland.
The rise is likely at least in part due to the government’s “Help to Buy Scheme” where buyers of new-build houses can put down a 5% deposit and receive a government loan for up to 20% of the value of the property. The government estimates around 10,000 home buyers have taken up the scheme since it launched in April.
The scheme will be extended to those wishing to buy existing homes from January 2014, with the government guaranteeing a portion of the loan.
Many commentators have condemned the scheme in helping to maintain the inflation of a property bubble, where current home-owners have their property investments protected and inflated by public money, whilst those looking to get onto ladder will be paying over a free-market value.
Record low mortgage rates, with interest rates now near-guaranteed to remain low by the governor of the Bank of England for the next few years will also have had a major impact on people choosing when to move house.
