The world economic downturn of 2007 had grave effects on the UK housing market. The financial crisis made it difficult for home owners to sell their properties and equally problematic for prospective homeowners to get on to the property ladder. Today, we are still feeling the effects of this global economic disaster and the housing market in Britain is yet to return to what it once was. In this article, we look at how to work around the current economic climate and get the best deal for your home.
How to add value to your home
As a seller in a difficult economic period, the market can be very delicate, with buyers cautious with their money and looking to get the very best investment. There are a few ways you can help to ensure your house looks the best it can be, and therefore stand out in front of prospective buyers – it's important to put your house in its best light when showing people around the property. This means lots of cleaning, particularly the interior and the windows. It also helps to decorate your house in neutral colours.
When selling a house you often have to speculate to accumulate. Things such as new flooring, like those at www.easystepflooring.co.uk, may be costly but can really help to impress buyers, while conservatories and loft and basement conversions are also good ideas. Reinventing your garage as a living space can be advantageous too, with the huge majority of garages in the UK not actually used for car storage.
What does the market look like now?
Despite a serious downturn in the market, there are sure signs of recovery.
January is traditionally a low period in the UK housing market and 2014 was no different. However, February of this year saw an impressive increase of almost 70% in comparison to 2013. This is a strong indicator of the resurgence of the housing market in Great Britain.
Despite these positive figures however, the statistics in this case can be a little misleading without the relevant context. While houses may be shifting at a much higher rate than this time last year, the average house prices of today are actually around 3% below than the peak prices that we were seeing in the UK in 2007 before the economic downturn. This difference between house prices today and pre financial crisis house prices is even greater if London, a city in which houses cost around 18% more than the rest of the UK, is taken out of the equation.
The future of the UK housing market
Just months after the first signs of the recovery of the UK housing market, some were predicting that the bubble would burst again, with a huge gap between house valuations and average income. These fears have been allayed somewhat, with low mortgage rates and schemes such as Help to Buy making it possible for people to bridge the gap. However, the inflation of housing prices is still rising at around four times the rate of annual pay increases in the UK. Should the trend continue, middle income buyers could be frozen out of the market.