Its not unique to see property appreciate by 20% in London’s up and coming suburbs, such as leafy Wimbledon.
Continued low mortgage interest rates combined with Government incentives to encourage more home loans are meaning mortgages are now the most affordable they have been for many years.
This has prompted talk of another ‘housing bubble’, and whether this will help drive the economy in the right direction.
Britons, need little encouragement to borrow against property and now seem to be making the most of it with levels approaching pre credit crisis days.
The result….Property prices rising at their most significant rate in three years according to Nationwide, one of the UK’s biggest lenders who monitors the market. In London the best performing regions are already nearly 20% above their former peak in 2007.
Critics are suggesting that the Government is helping to ‘pump’ the market feel good factor ahead of the 2015 Elections. Experts say a recovery driven by borrowing and credit is not sustainable and will cause problems further down the road when interest rates start to rise again.
The Bank of England has given indications that interest rates may stay low until 2016, and the Government has stated that their ‘Help to Buy’ scheme will be running for the next three years whether property prices rise or not. This will lure even more aspiring home owners into the housing market.
Low cost mortgages, a lack of available property stock and fast rising property prices are now creating bidding wars for property in the suburbs.
Many homes, typically houses are attracting sealed bids – not seen since the heady days of 2007, due to the amount of competition they are attracting.