Nationwide: Property market still buoyant across Britain
According to the Nationwide the property market across Britain remains buoyant and showed no signs of cooling down in February. Prices are 9.4% higher on average across Britain than a year ago with many analysts believing that prices have a way to go if the Help To Buy Scheme is left in place. Some commentators believe that the government should reduce the upper limit on house purchases under the scheme. Currently the scheme allows buyers to purchase a property up to £600k but many experts feel that this has caused priced to rise to unsustainable levels and that the maximum purchase price should be set and £300k – £400k. Of course there are many others that want it to remain at £600k because £400k will not buy you very much in London.
House prices across Britain have risen for the last 14 consecutive months according to Nationwide with the average price of a home now standing at £177,000. This is the highest level since April 2008 and is likely to roll through the pre-crisis levels soon. Price growth is being supported by many factors but mortgages at very affordable levels along with the growing economy and the Help To Buy Schemes have helped. Prices are also being driven up by the lack of available property to buy and this is likely to continue in the short term. Some have accused the government of stoking up the property market without providing new homes for people to buy