Boost in Property Market as House Prices Rise
According to the latest figures from Nationwide, house prices are higher than a year ago and the property market is seeing growth.
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January 14, 2014 (FPRC) -- The figures from the UK lender show that property prices increased by 6.5% compared to 2012 and that the average house price is now £174,566. This is an increase of 0.6% compared to October 2013. This takes the annual rate of price growth to its highest level in over three years and Nationwide said that this was the highest annual rise since July 2010.
The figures also include the first month of the second phase of the Help to Buy house buying scheme launched by the Government in October. The scheme is starting to have an impact on the property market. In September there were over 66,700 approvals for mortgages which is an increase of 34% compared to September 2012. According to estimated figures of The Council of Mortgage Lenders (CML), gross mortgage lending rose to £17.6 billion in October 2013 which is 37% higher compared to lending in October 2012.
The figures also show regional variations in house prices. There was a decrease in property prices in Yorkshire and Humber, the South East, the North West and the North East. In Wales there was a 2.4% increase and in London average prices rose by 0.2% to £390,720.
Long term low interest rates and the Funding for Lending scheme helping to rejuvenate a competitive mortgage market between lenders offering lower rate mortgages has also helped the demand in property. An increase in consumer confidence and the fall in unemployment are also helping to boost demand. There is also a large fall in the number of property possessions - down 29% in August 2013 compared to August 2012.
Fleur Rowan, What House?, says: 'This is a good sign that buyers are able to get onto the housing ladder for the first time and also move to a new property. Many factors are coming together to boost the property market including the Help to Buy scheme and more favourable mortgage rates.'
Notes to Editors:
What House? is a leading property website that features thousands of new homes in the UK. It also provides the latest property news, valuation of homes and property and mortgage advice. Over the last 31 years, What House? has held their annual What House? Awards, which are the longest established New Homes awards in the UK recognising UK house builders and developers across 21 categories.
Send an email to Sonya Bruce of What House
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