Finance news from Loans Park

London (Loans Park) July 9, 2007:The home prices across the UK are heading northwards. An average home in England and Wales now costs £179,935, a whopping £15,003 more than a year ago. Similarly, an average London home now costs £333,785.

Clearly, over a period of time, the homeowners are better placed with more equity in their homes. They can now afford to use the equity built over a period of time by taking out secured loans. It has been already seen that many homeowners are taking fresh loans on the basis of increased value of their homes. Some are using this opportunity to further increase the value of their homes by carrying out home improvements in various forms. 

Another repercussion to this development may increase the problems of first time buyers.  Increasing home prices is likely to have a bad effect on the first time buyers. According to the National Housing and Planning Advice Unit, as many as one third of the non homeowners now believe that they would never be able to get on the property ladder.