News
Housing market sluggish but some signs of improvement
Oct 4, 2011
Category: Residential property
The housing market remains sluggish with prices falling by 2.6% in the year to August, according to the latest figures released by the Land Registry.
The monthly rate of change from July to August saw a price decrease of 0.3%. The cost of the average house in England and Wales is now £162,347.
The only area where prices increased over the last 12 months was London, which saw an increase of 2.1%.
The figures, from the Land Registry’s House Price Index, show that the number of completed house sales fell by 13% over the year.
The reason for the fall is partly due to the difficulty many people have experienced when trying to get a mortgage, particularly in cases where lenders require large deposits.
However, there are signs that lenders are making more mortgages available at more affordable prices. Figures released by the Bank of England show that the number of mortgages approved for home purchases rose to 48,421 in June. That was an increase of 2,571 compared with the average number for the previous six months.
Many commentators believe the worst may be over in the housing market and expect to see more activity in the coming months, particularly if lenders continue to make more attractive mortgage deals available.
If you have been holding off from buying a property then this might be a good time to think about entering the market. Please contact Stephen Flint if you would like more information about buying or selling a property, including advice on mortgages and finance.