Moving a house is always expensive. It’s not just the property that costs a lot, but to the solicitors, removals and sometimes storage can be expensive too. However, of course the house price is the one that weights the most in the scale. No wonder why so many people try to buy the cheapest properties that’s possible. Our post will give you some ideas of what the house prices depend on and where are the cheapest houses in UK?
What does the house price depend on?
It depends on many factors.
1.) Economic growth. Demand for housing is dependent upon income. With higher economic growth and rising incomes, people will be able to spend more on houses; this will increase demand and push up prices.
2.) Unemployment, which is related to economic growth. When unemployment is rising, fewer people will be able to afford a house. But, even the fear of unemployment may discourage people from buying a house.
3.) Interest rates. They affect the cost of monthly mortgage payments. A period of high-interest rates will increase cost of mortgage payments and will cause lower demand for buying a house.
4.) Consumer confidence. It is important for determining whether people want to take the risk of taking out a mortgage. If people fear house prices could fall, they will delay buying.
5.) Mortgage availability. The more difficult to get a mortgage the less people will buy house. In the years of 1996-2006, many banks allowed people to borrow e.g. five times their income with a very low deposit. This ease of getting a mortgage meant that demand for housing increased as more people were now able to buy. However, since the credit crunch of 2007, banks and building societies have tightened their lending criteria requiring a bigger deposit to buy a house. This has reduced the availability of mortgages and demand fell.
6.) Supply. A shortage of supply/houses pushes up prices, whereas excess supply will cause prices to fall.
7.) Affordability/house prices to earnings. The ratio of house prices to earnings influences the demand. As house prices rise relative to income, you would expect fewer people to be able to afford.
It does worth to do a thorough research based on the above factors when considering to buy a house. Especially, when you are not really bound to any specific areas of the UK. You can save a significant amount of money by simply spending a couple of hours on the world wide web.
So, where are the cheapest houses in UK?
According to Zoopla, the cheapest houses in UK mostly fall to the area of Lancashire and North Lanarkshire. In those two counties, you can buy a 3 bedroom semi-detached or terraced house for a bargain price of £110,000. Yes, that’s right. But if you have an extra £15,000, you might as well buy a 4 bedroom terraced house. Why not?
You can also find other really cheap properties in Fife, County Durham, Tyne & Wear and Falkirk.
Which is the most affordable town to live in?
I think no one will be surprised when I say that the most affordable town to live in is in Lancashire. This town is Nelson. This is calculated by taking the ratio of the average house price to annual earnings. Nelson is a lovely town to live in, with a population of just under 30,000. It has a perfect position: within an hours distance, there is Manchaster, Leeds and also the seaside that you can visit. To sum up: you can buy a house for a bargain price, it’s really affordable to live in and there are many things to do in the nearby. Sounds like an ideal place to live in!
So, if you’ve been thinking of buying a house, but haven’t got the funds yet, these amounts are fairly easy to save up. These houses are ideal for first time buyers and small families to start their own life. And last but not least, it’s a great investment, too. However, if you feel like those areas are not for you, take your time and do some research with the help of the above list. You might save a couple of thousand pounds (or even more) by simply searching for a few hours.
Either ways, once you have your new home, pop us a message to save money on the house removal, too!