House prices are now rising at a greater rate than earnings meaning that affluent buyers are affording the mortgage deals needed to buy such properties but your average first time buyer is being priced out of the market. Couple that with the shortfall of new properties and it is predicted that this may slow house price increases in the months to come.
Britain’s housing crisis is deepening as prices rise and the shortfall in new construction worsens, while affluent borrowers are offered near-record low rates to snap up properties. Research this week has revealed that the average price of a house in Britain is creeping ever closer to £200,000 while the shortfall of new homes has hit 136,000 a year. This gap in housing supply has reached 100,000 a year in the capital alone.