House prices are up, and are apparently set to carry on climbing throughout the near future, making it more difficult than ever for first time buyers to get on the property ladder.
Statistics from the Office of National Statistics have found that house prices have climbed ever more over the last year.
The 12 months leading to October 2015 saw the price of the average home in England go up but 7.0 per cent.
In the 12 months up to September 2015, the average price rose by 6.1 per cent, indicating that the rate of house price increases is, itself, increasing.
The problem is more prominent in London and the South East. If we disregard house price increases in these areas, then overall the average house prices rose just 5.6 per cent, showing how much of an influence prices in these areas are having on the overall national statistics.
The fact remains that house prices are still going up, and it does not look like it will get any easier for people who are struggling to get onto the housing ladder already. This is despite government efforts such as the introduction of the Help to Buy schemes.
The recent implementation of the Help to Buy ISA means that it hasn’t yet been used to buy a home, and so there is no data on it. It is unknown whether it will be able to inject enough business into the market that house prices will come down, but judging by the past Help to Buy schemes, it may just help the individuals navigate the difficulties of getting onto the property ladder, and not make any significant changes to the market.
It would seem that the forecast for 2016 is that it will not become much easier for people to purchase their first home, although people who already own property will be glad to see the value of their assets rise.
