Equity in property to trigger remortgage boom
The Monitor shows that property prices climbed by 7.9% year on year to £191,375, while London saw an even greater rise of 23.6%, taking average prices to £474,359, writes Ryan Bembridge.
First-time buyers are still driving growth, making up 46.4% of mortgages written, while the average first-time buyer property price increased by 13.3% annually.
But Paul Smith, chief executive officer of haart, believes that remortaging will be the news story this spring.
“Home owners across the UK, who have on average accumulated equity of over £14,000 in their property over the past year, are expected to take advantage of their growing assets by remortgaging or downsizing this spring.
“The downsizers will ease the current shortage of supply which will help to quell rising house prices.
“The increase in equity is now more than £90,000 annually in London.”
The property market nationally saw a 21.3% increase in property sales.
Smith is yet another figure in the property market disappointed with the lack of far-reaching Stamp Duty reform in Chancellor George Osborne’s 2014 Budget.
He added: “In one fell swoop he could have increased the supply of homes for sale and capped rising house prices helping every level of the housing ladder.
“Instead he’s turned a blind eye and given nothing to the majority of homebuyers and sellers rather than throwing them a lifebelt.”