In general, property prices appear to be rising. Between January and May 2006, the uplift in house prices across the United Kingdom averaged 4.4%. In the event that this trend continues, then the yearly rise will be 13%. This will put the average house price at almost £195,000.
The Council of Mortgage Lenders confidently expects 1.2m property sales to be completed this year. This is a rise in the 970,000 previously predicted. They also expect mortgage loans to be £10billion more than they had thought, at a total of £85billion.
All this sounds very upbeat and encouraging. New loans approval for house purchases in March 2006 was more than 25% higher than for the same period 12 months earlier.
However, first time buyers are finding it especially difficult to get on the first step of the housing ladder and in some areas, particularly the South East of England and London, prices have been fairly static. First timers are needed to set off the sequence of events from starter homes upwards.
In many other parts of the country, including the north of England and Wales, house sales have continued to be buoyant, levelling out the average price of homes. According to the Halifax Building Society the rate of growth is expected to even out across the UK and it is thought that prices will rise to in excess of three times the predicted level during 2006.
Capital Economics, the economics consultancy, have been predicting that property prices will start to drop in the UK market for the past few years and was of the opinion that prices would drop by 5% in 2006; however they appear to have been over cautious according to the above figures are correct. There is some cause for caution though.
The Council of Mortgage Lenders has revised its forecast regarding interest rates and now expects the cost of borrowing to rise, maybe from 4.5% to 4.75%. Their economist, Jim Cunningham, thinks that demand should remain vigorous in the coming months but says that confidence and activity are closely linked with interest movements and predictions. The result of this could be a more modest rise in house sales after the recent highs. He does, however, look forward to a better outlook for 2008.
Mortgage lenders are becoming increasingly more cautious regarding their lending levels and the size of mortgages they will fund. This in turn limits the budget of the potential buyers.
The problem is that interest rates have been exceptionally low in recent years, in fact at their lowest level since 1955 and this has created an exaggerated level of debt. A rise in the mortgage rate may result in more people falling behind with their mortgage payments and an increased likelihood of their homes being repossessed.
Some caution is needed in this market. Purchasers who have taken on large loans on the back of the rise in houses could find some of the above factors worrying. If interest rates rise there could be an adverse effect on house sales and people could find themselves with increasingly expensive mortgages whilst there may be some stagnation in the property market, if not actual falls in prices.
It seems to be a time to exercise some caution. Mortgage debt can creep up and your house could just be slightly less of the asset in once was. Take care.
'The attention to detail and professionalism that Troy and his staff brings to our contract drafting process is unmatched. It’s a rare occurrence to find a law firm that cares as much about your legal protection as you do. But, Doucet Gerling is that law firm."
Mr. Doucet and his staff handled two foreclosures and a related matter for me. I found everyone in his office to be professional, effective and responsive. Everything he handled for me got me the results I expected. I highly recommend Doucet Gerling.
As an attorney and former client of Doucet Gerling, I was very impressed with the representation of Troy Doucet and his firm. I would recommend him to all who face difficulty in saving their home or getting cooperation with their mortgage companies.
If you need legal assistance regarding foreclosure, I urge you to consider putting your complete trust in Doucet Gerling. They will employ their vast knowledge and expertise on your behalf and work to attain a great outcome for your individual needs and situation.
"Troy Doucet is one of the most gifted attorneys that we have ever had the pleasure of dealing with. He treated us with kindness and generosity. We were most impressed with his integrity and high sense of duty to us. If you are looking for an attorney to get the job done we highly recommend Troy Doucet. Our family can never thank him enough for getting our foreclosure problem solved."
My company has worked with multiple law firms in the past, but none have come close to matching the quality we are seeing from Doucet & Associates. If you want an attorney who has a deep understanding of both the legal system AND business, hire them – you won’t be disappointed.
"Mr. Doucet worked wonders in my case. He stood up for me when I felt overwhelmed and helpless and kept my credit rating and future intact. Thanks you so much for helping me and my family."
"My family and I would like to send a thank you with sincere gratitude for all the time, hard work, and long hours set a side daily to represent and speak on our behalf during a very challenging time in our life. Our success is a reflect of your commitment. Thank you Troy Doucet & law firm."