House prices will continue to inflate as three million people plan to buy a new home in the next six months, says a new report.
According to online mortgaging firm, mform.co.uk, around 7% of the adult population will get on, or climb, the property ladder by the end of July.
The company recently launched its home purchasing index, which will track the number of people planning to buy a home on a quarterly basis.
According to the index, the London market looks the most lively, where 10% of people are planning to purchase a new home before July. East Anglia, at 4%, is the lowest in the country.
Eamonn Rice, chief executive of mform.co.uk, says despite increasing house prices, demand for homes remains surprisingly high.
“We estimate that between 2001 and 2006, the average annual amount spent on mortgages by people with home loans increased from around £4,600 to £6,600,” he says.
“Now we think it will be closer to £7,000. Despite the fact that house prices and interest rates are likely to rise, the number of people looking to purchase a new home is still very high.”
The home purchasing index enables people to choose a mortgage online based on a range of criteria, including costs and product features such as the ability to make over-payments.
Consumers can source personalised all-round best buys rather than deals based on headline interest rates or recommended because of sponsorship deals.
It also provides information on the standard of service of lenders’ application processes.IFAonline
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