Tag Archives: mortgage lending

House prices take a slight fall but will still be rising in the next year

May 4, 2012

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House prices seem to be fluctuating widely at the moment, Halifax have commented.

The mortgage lender and bank have said there was a 2.4% drop in April, this may have something to do with the stamp duty deduction as sales dropped after rising with the deduction.

With the drop in April it took the average house price down to £159.883 which is slightly lower than last year by 0.5%.

Halifax have warned that house prices are still rising even with this small dip.

“Prices in the three months to April were 0.3% higher than in the previous quarter, marking the first rise in this measure for seven months,” The Halifax’s housing economist, Martin Ellis, has commented.

“The ending of the stamp duty holiday for first-time buyers in late March appears to have boosted home sales early this year as buyers strove to beat the deadline, and has probably contributed to the volatility in house prices in the last few months,” he added.*

Nationwide have given a slightly different percentage to Halifax, but as the different mortgage lenders use information from their own lending it isn’t surprising that they all have different numbers.

Nationwide have put the annual fall at 0.9%.

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Property sales rose in March

May 1, 2012

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March 2012 saw a rise in property sales which HM Revenue And Customs have called a ‘typical spring bounce’.

February saw 63,000 sales and March sales rose to 74,000. This also shows that many buyers were taking advantage of the stamp duty deduction.

The stamp duty deduction may also be why mortgage lending rose in March, unfortunately the stamp duty is back in place so from now on many lenders and estate agents may see a drop in numbers.

Property sales and lending are still nowhere near what they were in March 2007 when the UK saw a property boom.*

 

*Source BBC News

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Rise in mortgage lending may only be temporary say CML

April 17, 2012

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The CML (Council of mortgage lenders) have spoken of a mortgage lending rise in February.

In February last year mortgage lending for house purchases were down 17% on January this year (in January loans rose by 4% to 36,600).

First time buyer loans have also taken a rise, up by 8% in Januaty to 14,100. Making that 18% up on last year.

 The CML (Council of mortgage lenders) have spoken of a mortgage lending rise in February.

The CML (Council of mortgage lenders) have spoken of a mortgage lending rise in February.

The director general of CML has warned however that this rise in loans may only be temporary.

He said: “It is encouraging to see the continuing year-on-year improvement in house purchase lending.

“However it is not clear whether the end of the stamp duty concession will lead to a falling off in first-time buyer numbers and how much this may be offset by the government’s New Buy scheme, available to all buying a new build property.”*

Lending and sales are still far behind those before the banking crisis in 2008, they may even fall behind in activity again even with the New Buy scheme.

*Quote from BBC News

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