The economy expanded by just 0.2 per cent between April and June- the slowest pace since the first three months of 2005, according to the office for National Statistics. These figures confirm the reduction in house building, has impacted on economic growth in the second quarter of the year, as the UK’s slow down of the housing market gathered pace.
The figures come amid fears of recession after recent industry surveys signalled contracting activity in construction, services and manufacturing sectors during June. The annual rate of growth in gross domestic product also slowed to 1.6 per cent, again the lowest for three years.
The quarterly growth performance would have been worse if not for an improvement in the services sector, which accounts for over 70 per cent of the economy. The service sector grew by 0.4 per cent in the second quarter of 2008, compared to 0.3 per cent in the first quarter.
The impact of the credit crunch on a struggling housing market was underlined as construction output fell by 0.7 per cent, following the decision by many house builders to shelve new projects since the beginning of this year.
Prices for new homes have fallen to the lowest level in two years, with average prices decreasing 2.6 per cent between May and June, according to the SmartNewHomes index.
The decline was universal in the housing market, with all property prices showing a decline. The UK average price of a new build home is now £260,073. Price falls of ten per cent or more occurred in Wales, East Anglia and South-West England. The total number of new homes available in June was 4 per cent down on figures for May.
Penthouses led the way, with a fall of 5.9 per cent. Apartments saw prices down 2.6 per cent and town houses fell 1.7 per cent to an average price of £234,218. Detached and semi-detached homes declined 1.6 and 1.4 per cent respectively to £312,324 and £232,853.
David Bexon, managing director at SmartNewHomes, said, “While overall property sales are clearly down on this time last year, buyers are still looking to enter the market. Developers are helping many people to do this with a range of excellent incentives and schemes, which in some cases have allowed people to bypass financial constraints and secure a more competitive mortgage.”
There are four apartments for sale in Leicester, with each property having two bedrooms and two bathrooms.
The properties are available with a low yearly service charge of £450.
Each property is on the market for sale at £120,000 and within easy reach of amenities and good transport links.
For more details, visit www.myfirsthomeltd.co.uk and you will see the homes reference number listed as 1408.
To arrange a viewing and to obtain more information, visit www.firsthomebuyerclick..co.uk. This website will explain in detail, and allow prospective purchasers to fill out an enquiry, which will assist us in matching your requests for your new home.
Furthermore, home buyers may telephone us on 0871 367 0173 where one of our agents may assist you. Alternatively you may register your interest and we will keep you updated with First-Time Buyer Deals in your area.
First-time buyers need to remain positive in their outlook, despite the withdrawal of Abbey and other lenders, from 100 per cent mortgage products. We all are familiar with the saying ‘all good things come to an end one day.’ We, who have been involved in the property industry for three decades, will understand and appreciate that we have just completed another economic cycle.
The property market moves in peaks and troughs and in cycles. Some commentators call it ‘boom and bust’. The UK has seen a huge increase in house prices in recent years, and we are now about to experience a correction or re-alignment of true property values. Likewise gone are the days where lenders will offer mortgages purely on speculation that the property will increase in value indefinitely.
If prospective buyers take the time to investigate, there are still plenty mortgage products available, as well as some excellent re-mortgage deals for those whose parents are willing to assist their child onto the property ladder. First-time buyers who have managed to save their five or ten per cent deposit are in a strong position. You do not have to look too far to realise that it is a ‘strong buyers’ market out there. A buyers market is one where each buyer has a multitude of offers on several different properties, all at prices he or she is comfortable to pay.
For those who need and want to buy a property, it’s important they get the best deal through a broker. If you are looking in areas where prices have remained robust, and you are throwing money away on rent, then some shrewd negotiating over the next few weeks and months could prove to be a sound long-term decision for first-time buyers. Lastly with the Government’s recent further assistance of £300 million, many builders and housing associations will now give first-time buyers increased assistance through incentives and reduced offers in the coming weeks ahead. Your first home is still within your reach, providing you can obtain a mortgage.
