Help to Buy Sales on the Rise and so is Risk of Housing Bubble

Wed, 16 Apr 2014

Help to Buy Sales on the Rise and so is Risk of Housing Bubble
Persimmon, the home builders have reported a boost in house sales in the first quarter of this year compared to 2013, and it is down to the Help to Buy scheme.

The year has seen a boost in 25% of sales per site, Persimmon has reported, and sold 7,200 homes in the first few weeks of 2014, which was a 38% boost on the same amount sold at the start of 2013.

Apparently builders are mobilising to take advantage of eager buyers.

However, the average selling price has risen 3% to £200,400. This is a sign that the building market is not building fast enough and that demand has risen and is not being met. This is bad news for potential house buyers as it means forking out a bigger deposit and taking out a larger mortgage overall.

Ed Balls has opposed the scheme, stating that it doesn't stimulate the building market enough and just raises demand. These figures seem to support him.

Furthermore, the Bank of England's benchmark rate is at its record low, where it has sat for the last six years. This will inevitably grow again, and so there is worry about the amount of people left stuck for money when the variable mortgage rates go up.
add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page

Copy and Paste the following HTML into your page.

Note: For a free no obligation chat with an independant mortgage specialist about your requirements please complete ourmortgage enquiry form below.

Mortgage, Remortgage or Buy-to-Let Mortgage Enquiry Form

Stop Press: Find the perfect mortgage!
Lending criteria has been relaxed and our specialists can find you great mortgage offers to compare.
Our team do all the work to find you the best offer
We'll help you find the best mortgage for your needs and ensure that everything runs as smoothly as possible.
Deposits required are again falling
The cost of the best deals has dropped recently for those borrowing either 80%, 85% or 90% of their property's value
Independent, searching the whole market
With 1000's of mortgage products available our mortgage brokers will source the mortgage that suits your situation.
Please complete this quick, free enquiry form.


Your Details

Home Buyer Guides

Home Buyer News

Speak with an independant mortgage specialist

About Company is part of the SFN Network of websites. Sitefinders Net Ltd is a U.K based company setup in 1995. Our core business is the development of online businesses using the generic domain name concept. We have a growing portfolio of websites in many different industries such as electronics, finance, retail, seasonal and health.

Privacy Policy

Get in Touch