Asking price hike will hit first time buyers
Average property asking prices have, once again, almost reached their all-time high of £281,782 set in June 2014. Whilst this month’s rise is lower than that seen a year ago interest in property searching is at an all-time high with a record eight million enquiries sent to Rightmove agents in January and February 2015 and so many believe that, once the election is over property prices will continue their rise.
This view is fuelled by a number of factors. There remains a shortage of available housing stock with new-build levels remaining low and a relatively small number of properties coming on to the market for sale. There have also been a number of long term fixed-rate deals launched in recent months which has meant that a property move has become more affordable for some. Finally there is predicted to be a rise in the numbers of ‘grandlords’ once the new pension freedoms come into effect.
Time will tell whether the result of all this will be that, once again, cash strapped first time buyers will be turning to the Bank of mum and dad but if that’s the case Lynne McCaffrey, Head of Property highlights some important issues to be aware of and take action on.
“There are two ways that you can own property together – either as Joint Tenants or as Tenants in Common. Being Joint Tenants means that each co-owner holds an equal interest in the property. As Tenants in Common each co-owner owns a specific share of the property. Any couple who have made unequal contributions to the deposit, for example because one has benefited from the bank of mum and dad, should hold their property as Tenants in Common.
For more information about Joint Tenants and Tenants in Common click here