In January, it is only natural that people will look forward to the year ahead and try and see what shape their finances are going to be in. It is difficult to know for certain what is going to happen, and a lot of personal things can take place which means an individual is affected in ways the market cannot predict but there are also instances that look set to affect the whole of the market. At this time of year, the advice and guidance of experts, when it comes to finances, is crucial and of particular interest to folk who want to plan ahead and make the most of the year.
One of the most important aspects of financial information in the United Kingdom relates to the property market. The UK housing market has caused a lot of pain and problems for people in recent years but with so many people’s lives and jobs dependent on the UK market, it is only natural that so many people take the market and sector very seriously. According to the Halifax, house prices in the United Kingdom will continue rising in 2017 but these prices will rise at a slower rate.
A rise in house prices is expected
The Halifax is the largest mortgage lender in the whole of Britain and they predicted that the growth of house prices over an annual basis would run at a level of between 1% and 4% by the end of the year. This can be compared with the figure for March 2016 which saw the average price rise by 10%, so there is no doubt that the rate of the rise has slowed down. For some people, this will be positive news as it could give them a bigger chance to get on to the property ladder.
One thing that always has to be remembered about the property market is that people come at it from very different sides. There are property owners who are keen to see prices rise because this means they are more likely to receive a higher sum of money when they sell their property. However, people who are looking to buy property would much prefer to pay a lower price for their home. This means that any announcement regarding house prices will be welcomed by some people but not welcomed by others.
Of course, the fact that house prices are rising, but at a slower rate, is a difficult position to be in and it may mean that no one is overtly happy with the latest changes. People looking to buy homes will still have to pay more because of the rising nature of house prices, so this isn’t ideal. There is also the fact that property sellers will not experience a rise in house prices that happened in recent years so they are likely to be annoyed at potentially losing out on money.
The rental market will also be affected
The rising prices will also have an impact on the rental market. The rental market has been huge in the United Kingdom of late and a lot of this is down to the fact that people cannot afford to buy homes so they have to rent instead. Landlords and property investors are always looking for property prices to rise because this leads to a greater demand for rental property, which allows them to charge higher prices or be more selective in who they let property to. Again, this news may be welcomed by these professionals but they may be slightly annoyed at the proposed return not being as high as the previous year’s figures.
It is essential that people face the New Year with confidence regarding their finances. Whether someone is looking to buy property or not, they have to know their budgets and understand what they can and cannot afford to do. Of course, there will be times when people have to deal with unexpected bills or financial issues, and this is where a helping hand can make all the difference.
A guarantor loan may provide people with the financial flexibility they require to resolve problems that arise. This isn’t the sort of loan that will help people buy property but when it comes to staying on the right track financially, it can make all the difference.
Andrew Reilly is a freelance writer with a focus on news stories and consumer interest articles. He has been writing professionally for 9 years but has been writing for as long as he can care to remember. When Andrew isn’t sat behind a laptop or researching a story, he will be found watching a gig or a game of football.
January 5, 2017