British breaking budgets on homes in the UK

  • 17 years ago
  • Uncategorized
UK home buyers are no good at sticking to a budget when buying a property in the UK. A recent study by YourPropertyClub who conducted a survey of 3,500 homeowners revealed more than a third are willing to go over budget to live in a particular area. This over spend translated into an average £9,524 or a 30 per cent overspend on their budgets.
UK house price inflation eased last month amid signs that higher interest rates are beginning to cool the London housing market, according to a new report out by Hometrack. However the last two years have seen consistent rises in British house prices and many first time buyers feel that getting on the on the property ladder will soon be impossible.
The survey also revealed that 17 per cent regret going over budget — but by contrast, one respondent who after overstretching himself with an ambitious home in 1992, was now in a great position with his property value
 The survey also revealed that one in 10 people think they would have been less likely to go over budget if they had been better educated when it came to buying a new property

The pressure for those with mortgages in the UK will mount as The Bank of England is widely expected to increase borrowing costs by another quarter point to 5.75%. Financial experts also predict that these will eventually rise to 6% by the end of the year.

The number of properties put up for sale in June was twice that of the month before, said Hometrack.

“The growth in supply comes at a time when demand is faltering on the back of recent increases in interest rates and widespread fears of further rate rises to come,” said Director of Research at Hometrack Richard Donnell.

In a bid to reduce the costs of selling a home in the UK supermarket giant Tesco recently announced that it was launching its own website aimed at those selling privately online. Fixed cost advertising at £199.00 is in contrast to typical estate agents fees of 2% of the property price.

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