How the UK Property Market Has Evolved Over the Years

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( — January 25, 2016) — If you have ever listened to your parents discussing buying and owning their own home prior to your birth, you cannot help but notice how much the property market has changed over the course of a single generation. Not only are homes more affordable and accessible than in previous decades, for example, but it is also far easier to source credit and secure finance from lenders. There are other aspects of the market that have changed too, with the cumulative impact of these creating a challenging set of circumstances for potential buyers in 2016.

3 Changes that have distinguished the Property market

With this in mind, what are the precise changes that have impacted on the property market over the course of the last generation? Here are three of the most prominent:

  1. Prices have accelerated faster than Earnings

Historically, the cost of housing and its growth was proportionate to the national average salary. This is no longer the case; however, as the last 18 months in particular have seen prices spiral exponentially while the national average wage has largely stagnated (aside from marginal increases in the minimum wage).

As a result of this, the average house price in the UK is now £195,999 and while this includes inflated London costs it highlights the challenges surrounding securing credit and particularly building a deposit.

  1. It is easier than ever to sell your Home

While it may be harder than ever before to buy property, conversely it is actually easier to sell your home. This is thanks to the emergence of the online real estate market, which enables vendors to choose from a wider range of service providers while also accessing more affordable brands. While traditional agents tend to charge commission based on a fixed percentage of the sale value, for example, online agents operate according to a one-off, transparent fee that offers huge savings.

  1. Home-owners have a wider range of options when encountering financial Difficulty

Ever since the great recession of 2008 (which was triggered by irresponsible lending and a calamitous sub-prime mortgage collapse) private sector firms and governments have strived to create greater security for home-owners. Whereas home-owners in previous generations had little option but to foreclose on their mortgage once they had defaulted, today’s residents can access specialist UK cash house buyers such as in a bid to complete a quick transaction and recoup as much of their initial investment as possible.