Home-buying in 2017

Home-buying in 2017

Buying a new home can feel like a rollercoaster ride, with plenty of highs but also a few lows.

Almost a year on from the EU referendum, and with a General Election on the immediate horizon, how confident is the UK’s housing market – and what does it mean for home buyers?

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How confident is the housing market?

March 2017 saw 48,178 loans approved for house purchase, according to the British Bankers Association (BBA), no change year-on-year, while the average approved loan rose to £186,800. House prices fell by 0.4% in April 2017, though were up 2.6% on a year ago.

However, the same month, consumer confidence in the housing market dipped to 37%, the lowest since July 2013, after widespread prediction of a surge in inflation and a fall in consumer spending this year.

This comes even as overall consumer confidence remained on the up, with a sixth consecutive month of spending increases.

What do the experts predict for the UK housing market?

Some experts suggest that a time of such economic uncertainty is bound to have an impact on the housing market.

Zoopla CEO Alex Chesterman is cautious about seeing growth in the property market in 2017, and said: “Buying a home is one of the biggest and longest term decisions that people make so they tend to hold off making such important decisions in times of heightened uncertainty.”

According to John Perry, of 2017 UK Housing Review,  more houses need to be built regardless of any changes in immigration policy after Brexit – the current target, set before the referendum, is 227,000 homes a year up to 2024. He also suggests that most non-British EU citizens tend to rent in the private sector, so that it is the area that is most likely to be hit.

It’s arguable that the fewer houses being built, the more the chance that those in-demand properties will be more expensive, especially for first-time buyers.

Nationwide’s chief economist Robert Gardner agreed that uncertainty makes it hard to predict the prospects for house prices, but added: “Low interest rates are expected to help underpin demand while a shortage of homes on the market will continue to provide support for house prices.

Will house prices go up or down?

Uncertainty about the next 12 months, and the effects on the economy, could cause the market to slow down as buyers and sellers mull over what to do next.

The economy is the major factor on the housing market, so if the pound continues to struggle in 2017, it may affect house prices negatively but if things start to improve, house prices could rise.

Investing in property to make a profit – rather than just to have a long-term place to live –  is always a risk. So, it’s important to make sure that you don’t borrow more than you can afford, and try to find the right mortgage with the best rate.

What to do before applying for a mortgage

Whether you’re planning on buying your first home, stepping up to a bigger home or remortgaging, Experian’s tips can help you feel financially prepared & confident ahead of your mortgage application.

  • Check your Experian Credit Score to help you understand how lenders may view you
  • Try not to miss credit payments
  • Try not to apply for other credit in the six months before you apply for your mortgage
  • Manage credit accounts well
  • Register to vote at your current address

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†Experian acts as a credit broker and not a lender in the provision of its credit cards and personal, car finance and guarantor loans matching services, meaning it will show you products offered by lenders and other brokers.

Experian acts independently and although CreditMatcher shows products for a range of lenders and other brokers it does not cover the whole of the market, meaning other products may be available to you. CreditMatcher services are provided free however we will receive commission payments from lenders or brokers we introduce you to. For information about the commission we receive from brokers for mortgages and secured loans click here.

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Copyright © 2017, Experian Ltd. All rights reserved.

3 thoughts on “Home-buying in 2017

  1. Gaynor Witchard


    We helped our son out of financial difficulties following his relationship breakdown which left him in considerable difficulty.

    We purchased a property on his behalf, and he has been regularly paying us the mortgage amount each month by standing order since 4 December 2013.

    In April this year, he felt he was now in a position to start house hunting and taking on a mortgage himself. We were delighted for him and we spent a great deal of time searching for a suitable property. Unfortunately, his mortgage application was turned down due to a credit report being less than perfect. This led us all to feel hugely disappointed, as my son has worked really hard to raise his credit score.

    My question is this – can his retrospective payments to us in respect of the mortgage be taken into consideration? We have documentary evidence via bank statements. I know there is a company which partners with you recording rent payments, but this would only be useful for future payments and wouldn’t become apparent until next year.

    If it is possible, how would we go about sending you this information and, if we did, would this new information be likely to increase his credit score and status please?

    Many thanks


    1. CreditExpert Stuart

      Hi Gaynor,

      I’m sorry to hear about your Son’s recent decline after applying for a mortgage and I can understand that you are looking for ways to improve your Son’s Experian Credit Score at this time.

      Your Son may find this guide on what to do if they have been declined helpful here.

      In terms of retrospective payments that your Son has paid for the house, unfortunately, we are not able to add this to your Son’s Experian Credit Report at this time. You however may want to look at a service like the Rental Exchange which would record the payments in the future however. You can learn more about this here.

      In terms of if this information would or would not increase your Son’s Experian Credit Score however, the information is calculated based on all the information which is listed on your Son’s report and so I can’t say for certain how much of an effect a new account would show on the report at this time. Your Son may want to look at applying to view a copy of their Experian Credit Report however and you can see the options we have available here.

      Kind regards,

  2. Andrew Cove

    With regards to predictions on Will house prices go up or down? It’s hard to compare the UK housing market as a whole as there will be winners and losers. Regional cities such as Birmingham, Manchester, Liverpool and Edinburgh still have catch up to play against London and surrounding areas.


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