Prime Minister plays down danger of housing bubble

bubble-1382844-mPrime Minister David Cameron has moved to allay fears that the government’s flagship Help to Buy Scheme is risking a potential ‘housing bubble’ in the market, branding the scheme as a ‘complete success’.

Mr Cameron praised the impact the scheme has had in such a short space of time, and highlighted that over 700 houses had been purchased and another 6000 were experiencing some form of market interest since it begun earlier last year.

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Mortgages set for tighter checks in 2014

2013 was an undeniably hot year for the British property market, with house prices and purchases rising to their highest levels in almost half a decade during the calendar year.

With the Bank of England set to refocus financing from their Funding for Lending scheme away from the property market this year, it is more than likely that acquiring a mortgage will become more difficult this year than the last.

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Bank of England issues warning to UK homeowners

BanknotesThe Bank of England has warned that people with large loan to value mortgages at the moment will struggle to maintain their loan repayments in upcoming years, if they do start to plan their finances in accordance to higher interest payments.

The Bank argued that if interest rates increase prematurely, wages will have to rise at a similar rate otherwise many will be faced with monthly repayments that they will simply be unable to meet.

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2013 saw 8.4% increase in house prices

buy_to_letProperty prices in the UK rose by a monumental 8.4% in 2013, according to prominent Building Society Nationwide.

This means that the average price of a house in Britain is now estimated to be around £175,826, almost a £10,000 rise from the year before.

The severity of price jumps has been attributed to the steepness of price rises in the final quarter within London, where a massive 15% increase in property prices happened in the latter stages of 2013.

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