House prices: what to expect in 2014 in the UK

2013 was profitable for many homeowners, but what will the next 12 months bring? We share experts’ predictions and forecasts

Let the good times roll. After years of average performance since 2008, this year saw the British property market roar back to life. According to Halifax, prices rose by 7.7 per cent across the country as a whole. In London, the figure was more than 10 per cent. Elsewhere, growth was not so strong – parts of the North and the West Country, in particular, might ask when this economic recovery is going to arrive. But in general, 2013 was a success story for British property. What will 2014 bring? Whether you are a first-time buyer or a foreign billionaire, here is what the next 12 months have in store.

Rising tide

The general agreement is that next year will bring more of the same for homeowners. “It will be another good year for property prices,” says Doug Shephard of home.co.uk. “Increased confidence will no doubt produce extraordinary price rises. Regional disparities that exist will continue to play out, and may well be exaggerated further by the Government’s blanket implementation of Help to Buy.” Savills agrees that 2014 will see a continued increase in prices, with Greater London catching up with prime central London. It expects the commutable area around the capital to increase by five and six per cent, with central London rising three per cent. The rest of England and Wales will see a three-four per cent increase, with Scotland lagging behind at one per cent.

With an increasingly limited supply of properties and ongoing demand, it could prove a popular year for making a change. “We have experienced a 21 per cent year-on-year increase in traffic, ” says Miles Shipside of Rightmove. “With mortgages still historically cheap and interest rates set to remain stable, if you’ve been putting off a good reason to up sticks, it could be opportune to make 2014 the year to move.”

Read more here http://www.telegraph.co.uk/property/propertynews

Rent or Buy in the UK Can You Afford It.

Owning your own home is a huge commitment, not just to the building you buy and the area you choose to live in, but also to your life (and to another person if you are buying with a loved one or friend).

Benefits of owning your home

There are many benefits to home ownership. Here are just some of them.

• Once you’ve paid off your mortgage, your home will be yours and it could be worth far more than you paid for it.

• If your home increases in value you can use that equity to help you afford a bigger home or to fund a more comfortable retirement if you downsize.

• When you retire you won’t necessarily have the income you need to keep on paying rent – if you have paid your mortgage off you’ll be living there ‘rent free’.

• You can spend money improving your home and increasing its value, whereas you can’t alter a rented home without the landlord’s permission.

• Sometimes it can be cheaper to buy than to rent.

Potential downsides of owning

• It’s a big financial commitment – you need to be sure you can afford what you’re taking on. See the later section ‘Can you afford to buy?’

• You also need to be sure you can afford maintenance costs such as replacing a boiler if it packs up or fixing a leaky roof. If you stretch yourself too much when you buy you may resent not having money for meals out, holidays and entertainment.

• You have less flexibility than when renting. For example, if you want to move for work or personal reasons selling up and moving on is far more expensive if you own as you’ll have all of the associated estate agency and legal fees. Also bear in mind that it may not always be easy to sell your home – you’ll be dependent on what’s happening in the market.

• If you’re living with someone else and split up, the process of sorting out the property will be far more complicated and expensive.
• The first step towards buying a property is figuring out whether you can afford to do so. There are many costs associated with buying your own home, beyond your mortgage repayments, including:
  • deposit
  • legal costs such as solicitor’s fees
  • survey cost
  • Stamp Duty
  • removal costs, and
• your monthly bills – such as gas, electricity, home phone, etc.
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