Private Finance comments on ONS House Price Stats for Small Areas

Shaun Church, Director of Private Finance, comments on the latest House Price Statistics for Small Areas published by the ONS.

“Traditional ‘starter’ homes are falling out of favour with transactions on flats and maisonettes falling by 10.3% in just a year. The cost of stamp duty seems to be preying on the mind of many UK homeowners and heavily influencing their property purchase. Buyers are looking to “leapfrog” the ladder, pushing themselves to buy larger homes that will suit them not just for now, but well into the future. It’s a smart move from many homeowners, as minimising the number of steps needed to reach their ‘forever home’ can result in a significant reduction in their lifetime stamp duty bill.

“With mortgage rates so low and lender criteria improving, taking on a larger loan on a larger home is now more feasible and affordable than it might have been in recent years. While borrowers are being ambitious in their property plans, any cause for concern should be quelled by the fact that lending still satisfies strict criteria and mortgage payments continue to account for a relatively low proportion of income.”

Kindly shared by Private Finance