The health of the housing market is commonly seen as an indicator of the health of the country’s economy. The rate at which mortgages are approved, the amount people are borrowing and the willingness of lenders to provide loans signal how confident the banks and the buyers are in the national financial situation.
Taking a look at Theresa May’s plans to for the housing market can help to give us an idea of the changes both buyers and sellers will see in the coming months.
Help to Buy
At the beginning of October, the Government announced that it would find a further £10bn for the Help to Buy scheme. The scheme, which the Government had previously planned to scrap, helps young people to get their feet on the property ladder. It was an important part of the Conservative manifesto before the election and the party hoped that it would help them to win back some of the younger voters, many of whom had switched to Labour in the past year.
“Just 20% of those aged 25 own a property, compared with 46% two decades ago, according to the Local Government Association. Almost half of those aged 24 to 34 in England pay rent to a private landlord.”
This makes home ownership a major issue in the UK and a hot topic for Theresa May and the rest of the Conservatives.
In the run up to the election, the UK housing market had slowed considerably. Following the shock result, the number of mortgages being taken out has fallen even further. Although the base rate may rise further in the future, overall, mortgage rates remain low and lenders are still competing for customers by offering a range of tempting deals. Theresa May’s handling of the economy over the coming months will likely determine how quickly rates rise. This could have an impact on millions of homeowners across the country.
Simplifying the buying process
One positive step that Theresa May and the Conservatives have taken is to launch an investigation into how the buying process can be made easier. By talking to experts involved in the industry and looking at the statistics and data available, the government hopes to make purchasing a home faster, more affordable and less stressful. The exact form these measures will take remains to be seen. However, the fact that the government is even attempting to simplify the process is good news for buyers everywhere.
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Written by: Editorial Team