Surveyors Believe Housing Market in Bristol is Showing Signs of Recovery
24 October 2013
The Royal Institute of Chartered Surveyors has recently made optimistic predictions about the housing market. The organisation representing surveyor’s market report has suggested that growth is on the horizon. These predictions come at the same time as the Office of National Statistics has released housing price figures, which also paint a positive picture of the housing market.
Housing Prices Rising
The Office of National Statistics has recently released its figures on housing prices across the country. Bristol housing prices have seen an increase, building upon the gradual but consistent upward growth of the previous few months. The second quarter of this year saw housing prices in the City of Bristol rise by 0.7% on last year, which represents a 1.4% increase on the previous quarter. There were 1,457 sales, taking into account all different property types, in the period detailed (source).
More homebuyers on the lookout
Government initiatives and confidence in the housing market have urged potential homebuyers into action. While the West Midlands and North-East England saw the highest buyer interest (a 14 year higher) Bristol has still been experiencing large levels of interest. 40% of surveyors in Bristol are reporting that they have received an increase in instructions. The South West saw an increase in buyer enquiries of between 20 and 30% (source).
Government help to buy scheme
The government’s Help to Buy scheme could be one of the reasons for surveyors seeing an improvement in the Bristol housing market. The scheme is targeted at first time buyers, and provides financial aid towards the cost of getting a mortgage. It allows homebuyers to put down a deposit of just 5%, and also provides a further 20% of the mortgage value as an interest free loan.
This is allowing more people to look for their first home in a time when low wages and poor interest rates are making it hard for working people to save the usual 10% required for a mortgage. The 20% interest free loan provided by the government also reduces the overall cost, making it more attractive to take out a mortgage, and encouraging the banks to lend by reducing their risk. Since April this year 10,000 people registered for the Help to Buy scheme.
A long way to go
The increase in house prices may be a good sign for the economy – although not everyone agrees that rising house prices are a good thing – yet there is still a long way to go. But the figures for Bristol are looking good, and surveyor market opinions seem to support the idea that more growth can be expected in the future as the market continues to recover.
If you are considering buying a home, you need to make sure you know what you are paying for. As well as basic surveys and mortgages valuations, Allcott Associates provides in-depth building surveys that supply you with all the information you need to know. Contact our Bristol surveyors office for more information today.