What's the year looking like so far?

March 4th 2016
By: Mary.Wilkins
What's the year looking like so far?

The year so far has been an interesting one, with recent headlines in the press indicating that London will become a city of renters by 2025 and the buy-to-let book seeing mortgage lending to landlords reaching a high.

On average, the price of a home in Britain rose £18,000 last year according to government figures.  The 6.7% growth was slower than the 9% rise recorded in 2014 but massively exceeded inflation – with January’s cost of living rising only by 0.3%.  Interestingly, the Office for National Statistics said that house prices in England were now 1/5th higher than their pre-financial crash.

With regards to the buy-to-let boom, we have seen lending for buy-to-let purchasers rise to £15.6 billion which is the highest since 2007 when it was at £23 billion.  This, despite the barrage of tax hikes the Chancellor is implementing for buy-to-let investors investors together with an additional 3% levy on stamp duty for the purchase of additional property which comes in on April 1st 2016.

Research reveals that by 2025 60% of Londoners will be renting and therefore only 40% will be owning their own home, it must be an interesting conundrum for the Chancellor with his goal being designed to create a nation of homeowners by boosting the market with schemes like Help to Buy.
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Christopher Lines
Managing Director