With the UK’s largest mortgage provider suggesting that house prices are beginning to drop significantly in price again, prospective buyers looking to purchase cheap home insurance on a property for the very first time may just see a glimmer of hope on the horizon.
Difference in figures surprising
With the Halifax Bank reporting that their House Price Index dropped a surprising 1.2% in April, compared to March figures, the likelihood of bargains a plenty are out there for those that can manage to get a loan. It should be noted, however, that the figures vary quite considerably from those supplied by the UK’s largest Building Society, the Nationwide, who last week said that there index suggested a fall of just 0.2%. Considering that both major players in the market base their figures on housing values placed on new mortgage approvals it is confusing as to why there should be a big difference.
That doesn’t change the overall picture though, and that is, house prices are still falling and although many prospective buyers would love to get a home insurance quotation on such properties, it is just not happening. The uncertainty of interest rates remaining at their record low level, the price hikes in the shops and garages and the uncertainty surrounding jobs, particularly in the public sector still seems to be having a profound effect on the general public. The situation is not helped of course by the fact that banks still seem very reluctant to lend unless a big deposit is secured.
Value dropped by one fifth
The Halifax confirmed that the latest drop means that the average price of a dwelling in the UK has now dropped 20% from the peak values of August 2007, a sobering thought for all those who bought at that time and also for anyone thinking about entering the realms of house purchase at the time.
Green shoots of recovery?
The Halifax did point out, however, that not everything pointed to further decline. The Royal Institute of Chartered surveyors (RICS) have reported a shrinking of unsold properties on Estate Agents books. The Halifax asserts that this is a sign that house prices could actually soon start to rise.
Time to make a move?
More reason then for those first time buyers with at least some savings to start chasing the new low deposit loan requirements introduced by some loan providers at the beginning of this month and get out there and find a bargain