The National Statistics reports show that house prices across the United Kingdom have had a year on year rise on average of 6.2%
These figures are very promising for the property market within the UK and if the trend continues the average home will increase in value next year by over £10,000.
What does this mean for Droitwich?
Droitwich Spa is a small town set in the beautiful countryside of Worcester, located 22 miles south of Birmingham. The property market in Droitwich has risen by 12.3% over the last year which is great news for current home owners.
In June 2018 the word Droitwich was searched on Rightmove under properties for sale a huge 163,603 times which demonstrates its popularity!
With average house prices of detached houses at £360k, semi-detached at £225k and terraced houses at £170k (as of March 2018 sold prices) it’s easy to see why. *
For those looking to make the first step onto the property ladder, the government have various schemes for first time buyers including ISA’S, shared ownership and starter homes which helps give them the step they need.
What are the options for First Time Buyers?
The schemes open to first time buyers are the government’s way of helping continue the strong growth in the UK housing market and make locations and type of house more accessible.
Help to Buy:
This scheme is here for not just only first-time buyers but also existing homeowners who may want to purchase a new build. The scheme offers a borrowed amount of 20% on a purchase price under £600,000 which will be interest free for the first 5 years (as long as you have at least 5% deposit) there is a limit on this scheme as you can only set up a Help to Buy scheme until 2021.
Help to Buy ISA:
You can only have a Help to Buy ISA if you are over the age of 16, a first-time buyer and if you are a UK resident. The advantage of having a Help to Buy ISA is that the government tops up your savings account by 25% which you will see when you purchase your first home. For example, if you put in £200 a month you will get an extra £50 on top of that. There are certain limits with ISAs which have different offers and benefits, therefore its always best to look around to see what you can get from these.
This is where you will purchase a share or percentage of the property from a landlord which is usually a housing association or the council. With this scheme, you will need a mortgage to pay for your share which will be between a quarter and three quarters of the value price. After this, you will also then pay a reduce rent on the share that you do not own. After a few years you then have the option to purchase a larger share of the property.
Demand in Droitwich:
House prices have grown considerably over the last 10 years across a wide variety of styles of houses in Droitwich and in fact terraced houses have increased by over 17% which cements the concerns that first time buyers have with their starter homes.
An interesting outcome perhaps of this increase in price of the more traditional starter home is the fact that sales of flats and apartments picked up considerably in the first quarter of 2017.
When is the best Time to Sell your house in Droitwich?
In Droitwich the biggest month for home sale completions in the last two years was September 2017, 69 properties completed with HMRC in that month and the quietest month was January 2018 where only 23 properties completed. Therefore, it is advisable to get on the market before these months to allow all the different marketing schemes to take place.
That said, because of current market buoyancy there’s never a bad time to put your property on the market as there are always clients who are ready to purchase properties for various reasons.
We have high expectations for the property market in and around the Droitwich area. Over the next year, referring to the Nationwide Statistics & Statistics found on Rightmove, we hope to see the increase in property values and carry on working with the high demand the property market has to offer.