Very Quick House Sale

After six quarters of contraction in succession, the UK economy has finally turned the corner according to recent figures.

House sale prices were always at the centre of news during the recession with stories surrounding mortages and rescue packages prevalent over the past couple of years.

The housing market is core to economic wellbeing and not only is it an area of the economy that directly affects a significant proportion of the population but also a barometer of the economy as a whole.

Reflecting on 2009, when house sale prices were higher than expected and the sector as a whole outperformed many predictions, we can begin to see encouraging trends for the proceeding year.

So, what does the year have in store for homebuyers, first time buyers and homeowners keen to get a return on their investment?

There were more buyers in 2009 than the property market expected. A number of savvy property investors took advantage of the affordable house sale prices and low interest rates to make purchases that are sure to pay off in the future.

Although the recession was a challenge for the housing market, there has been significant and fast improvement within the sector. House prices stabilised in 2009 with a slight increase in price recorded. Consumer confidence returned to the housing market and many people followed the examples of property investors to take advantage of low prices and interest rates.

There are further initiatives in the pipeline that could further bolster the housing sector. For example, the Scottish Government is trialling the “New Supply Shared Equity Scheme” as part of its LIFT (Low Cost Initiative for First Time Buyers) scheme. This will run during the 2010/11 financial year.

Private schemes from housing developers are also on the rise with many introducing shared equity schemes to help buyers afford a new home.

2009 was an unexpectedly positive year for the property market as a whole. At the beginning of the year, many experts were predicting widespread disaster with further drops anticipated. However, according to Nationwide, average house sale prices rose by 5.9 per cent over the year.

Meanwhile, the Halifax First Time Buyer Annual Review suggests that affordability for first time buyers had improved significantly during 2009.

According to the Nationwide report, property prices rose by 1.2 per cent in January. As we look forward to the remainder of 2010, there are reports suggesting that the property market will continue to grow. The Centre of Economics and Business Research has said it expects an annual growth in house sale prices of six per cent.

As competition returns to the sector, building societies and banks are offering more widely available mortgage deals which are also playing a part in encouraging people to purchase a new home. For many, the growth of the sector is another benefit which ensures that return on their investment is far more likely.

With consumer confidence in house prices allied to increasing competition amongst lenders, it seems that the rise in house sale prices will continue.

There are many tends affecting the current rise in house sale prices. If you are in the market for a new house, gain an understanding of the outlook for the housing sector and reassure yourself of the investment potential.