While the UK Government’s Help to Buy mortgage guarantee, launched earlier this month, was not well received by all, prices in prime central London continue to climb, and are now some 23% above their previous peak according to data from the ONS this week
Although, as can be seen from the map below, regional prices are still low with only London prices pulling the UK average upwards. It is interesting to note that once inflation is stripped out, average UK house prices are around 16% lower than the 2008 market peak.
The initial signs since the launch of the UK Government’s Help to Buy scheme are that the mortgage deals for 95% loans are slightly lower in price than deals that were already available, with rates of between 4.99% and 5.19% for a 2-year fix. It is hoped that the new deals could stimulate more competition in the market.
For more on this, and a complete round-up of all price movements, read the Residential Market Update in full.