Some properties have been selling for around 10 per cent more than they were a few months ago, as buyers are finally able to tap into mortgages under the Help to Buy scheme.
The phenomenon is affecting properties which are handy for the town centre, near good schools and are architecturally interesting, say managers at Brian Holt’s Leamington and Kenilworth offices.
Leamington manager Jane Canning said: “There are examples of properties making £500,000 that would only have sold for around £450,000 less than a year ago as buyers scramble for what few properties there are on the market as demand continues to outstrip supply.”
Julie Philpot, manager at Brian Holt’s sister office in Kenilworth added: “Three bedroom semis are always the most popular houses in Kenilworth and hold their value. But now we’re seeing prices shoot up by around £40,000 for some homes – to around the £280,000 mark.”
While this may seem good news for sellers the Brian Holt team fear the arrival of the low deposit mortgages could lead to a price bubble as demand outstrips supply.
Jane Canning added: “While the Help to Buy scheme is good news for those who haven’t got a large deposit it does mean there are fewer houses to go around with the obvious knock on that the best houses will start to command higher prices.”