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Fri 10th September, 2010
News
House prices have stabilised |
31st May 2006 |
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House prices appear to have stabilised, primarily due to affordability constraints, but mortgage approval volumes are markedly lower.
According to the British Bankers Association, April saw the first year on year drop in the volume of mortgage approvals for nine months. The BBA explained due to the timing of Easter there were fewer working days last month. There were twenty-three working days in March and only eighteen in April. Approvals of new loans fell to 64,683 from 85,698 in March.
Meanwhile, evidence of stabilising house prices leading to a slow growth summer was in evidence from all of the main indices.
Halifax reported a 2% jump in prices in April (4.4% since the start of the year).
Hometrack reported a 0.6% rise in property prices in England & Wales taking a typical house value to £163,500. The highest rise was in London, up 1.2% with most of the country remaining static.
Rightmove reported a 2% rise in asking prices in England & Wales to the middle of May.
The newly formed Department for Communities and Local Government (DCLG) (formerly the Office of the Deputy Prime Minister) reported a 2% rise in prices to the end of March.
Although interest rates stayed the same at 4.5% in May the uncertainty over interest rates has clearly dampened demand for mortgages. According to the Council of Mortgage Lenders mortgage lending fell by 12% in April and reported that this trend look set to continue over the next six months, dipping further in the event of an interest rate hike.
For further information, please do not hesitate to contact Mr Bill Dhariwal, Managing Partner, Lawcomm Solicitors, DDI: (023) 8038 4404 E: bill.dhariwal@lawcomm.co.uk
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