House prices in the UK saw an increase of 11% in the year to May, driven by ‘panic buying’ by first time buyers. While the interest rate in the UK is low and mortgages have been more easily available than immediately after the crisis of 2008/9, younger buyers see this as perhaps their only chance to get into the market. First-timers accounted for almost half of all purchases in May. As with many housing markets, parents contributing cash to enable their children to afford deposits has helped the UK housing market. Despite the surge in prices, one of the UK’s biggest lenders, Nationwide says there is some evidence that things are stabilising. Read the full story.
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