House prices still rising
27 August 2009
According to data released by mortgage lender Nationwide, house prices have continued to rise during August, making four consecutive monthly increases in property values. Additionally, the three-month comparison, which is generally considered a more stable measure, showed a rise of 3.3%.
While this is welcome news, property prices are still 2% lower than they were 12 months ago. Low interest rates have given home-owners much needed breathing space and allowed them to stay in their properties instead of being forced to sell. This has reduced the number of properties on the market causing property prices to rise as demand outstrips supply.
Some commentators are now concluding that this could be the end of the house price slump while others are predicting a “bumpy” recovery and that we are not out of the woods yet. The next couple of month’s results will be awaited with interest by everyone in the industry.
Despite the good news, mortgage finance is still tight, with the best deals only available for those with at least a 25% deposit. Hopefully once lenders become confident that the property price slump is over they will start lending competitively at higher loan-to-values.
Details of the full report can be found at the BBC.
Last Updated: Thursday, 27 August 2009 13:06:50