Buying a House in 2014 - Blog by Design a House Sign
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Buying a House in 2014

28 January 2014, by Design A House Sign man holding model house and house keys

If you follow Design a House Sign on either Facebook or Twitter you'll know that we have a keen interest in the housing market. It seems as though the housing market is the hot topic in 2014, with there being lots of industry related news online and in our newspapers. Over the past few months we’ve been regularly commenting on the situation, so we thought we’d add a quick blog post summarised what we’ve learnt.


2014 Housing Market

The UK housing marketing has been rather volatile over the last few years, with both buyers and sellers struggling to make the most out of the situation. However, this could all change. According to the latest forecasts, the typical house price in the UK is expected to cost £227,000 in 2014, with experts predicting that house prices will be 1.4% higher than in 2012, which was just under the peak achieved before the financial crisis. Combine this with that fact that population growth is expected to exceed the number of houses available, you have a possible reason for house prices remaining high.


Help to Buy

The government backed scheme is intended to help first time buyers get on the housing ladder with deposits from as little as 5%. This means that leading banks will be offering a range of Help to Buy mortgages up to 95% of the properties values (for the value of up to £600,000). Depending on the percentage of the deposit, the government then guarantees up to 15% of the properties value. The controversial scheme has come under much criticism by many with them suggesting that its introduction could lead to a house price bubble, with estate agents now reporting higher prices that at any point for more than a decade.


Alternative – Save for a Deposit

If Help to Buy isn’t for you then there’s always the alternative, save for a deposit. Saving may seem like a never ending task with little or no light at the end of the tunnel, but the benefits of saving a hefty chunk are clear for all to see. The bigger your deposit, the lower the interest rate you will have to pay, so saving does pay off eventually. Below are some great tips from Right Move designed to help you achieve your goal:

Set a Target

The best way to achieve this is to work backwards. Start by determining how much your future property will cost. This can of course vary depending on your needs, location of the property and trends. Then book an appointment with a mortgage broker to get an idea of what they will lend you based on your circumstances and the deposit to aim for. Don’t forget that when saving for a deposit you'll also need to factor in legal fees, stamp duty and some money for actually moving.

Budget Daily

Setting a daily budget and sticking to it is the best way to make sure that you're not spending beyond your means. Set a time period (1 week) in which you document exactly where your money is going and only then will you be able to identify possible saving opportunities. A great idea is to set yourself a weekly budget and get this amount of cash out at the beginning of the week, not allowing yourself to dip into any credit or debit cards.

Break the Renting Cycle

How is it possible to save for your own place when all of your money goes on renting? Well, the simple answer is, it isn’t. Although this isn’t an option that’s going to be available to everyone, simply moving in with Mum and Dad for 12 months could go a huge way to helping to achieve your target deposit figure.

How is it possible to save for your own place when all of your money goes on renting? Well, the simple answer is, it isn’t. Although this isn’t an option that’s going to be available to everyone, simply moving in with Mum and Dad for 12 months could go a huge way to helping to achieve your target deposit figure.

At Design a House Sign, we love keeping up to date with the latest property related news. For this we regularly read the Right Move Blog as well as the Zoopla Blog, if this is an interest of yours, these sites would be a great place to start.

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