Average house prices took a dip between October and November of 2015, with the cost coming down by £380. However, over the year up until November, the prices increased by a huge amount.
The small price drop over the month in a minor victory for those seeking to become homeowners, particularly first time buyers. It shows that it is possible for house prices to come down, and may even be the emerging tip of a long term downward trend.
However the significant rise throughout 2015 is too large a jump to ignore, and it shows that there has been no improvements to the market. Supply is not meeting demand, and the price of the average home went up by £16,494, it is reported. It now stands at £204,552.
This is a big issue for first time buyers. Lenders are often unable to lend to people when the overall mortgage value exceeds a certain multiple of the borrower’s annual salary. Apparently, £204,552 is almost ten times the average salary, putting it far out of reach of responsible lending, according to the new regulations that shook up the mortgage market in 2014.
Unless this drop in November is the beginning of a new downward trend, first-time buyers are going to struggle to be able to get onto the housing ladder by themselves, and the Help to Buy government schemes seem to have not being able to bring the house prices into affordable reach so far.
