It has been a tough few years for the UK’s housing market, but things have been looking more promising lately. With increasing availability of high Loan to Value (LTV) mortgage products, and competitive rates (among other factors), buyers are more able to join the market. Which means house prices are on the rise.

According to the latest report by the Halifax, prices in the three months to December were 7.5% higher than in the same three months last year (2012).

This has sparked a considerable amount of debate – as financial news always will – about whether this is a sign of recovery or warning of a housing bubble. Some worry that rising prices could be an early indicator of inflated value leading to a bubble. Others see rising value in properties as signs of economic recovery.

Martin Ellis sums it up for Financial Reporter:

“Mounting signs that the economic recovery is becoming firmly established, together with a predicted decline in unemployment, should further boost consumer confidence over the coming months. This will increase the likelihood that more people will consider buying a property in 2014, therefore supporting housing demand.”

Here at Limetree, we are pretty confident that this is a natural realignment of property value. This is particularly true for Cambridge, where the housing market is strong. We like good financial news, and see increased value in property as part of a natural trend.

It is certainly the perfect time to have a look at your personal situation. There are more options for borrowers, thanks to competitive mortgage products, and sellers may be in a good position to put their properties on the market. Give us a call, and we’ll go through your particulars together.

Posted in Market Watch, Mortgages