House price increases return to double figures

June 17, 2010 by Brendan O'Neill

News

Recent government statistics show the annual rate of house price inflation has returned to double digits.

According to the Department for Communities and Local Government (DCLG), UK house prices for April were more than 10% up from the same month last year.

At 10.1%, this is the highest inflation rate since October in 2007 during the downward trend.

These figures show the average property value in the UK is £207,516 and the annual house price increased in all the countries of the United Kingdom with the exception of Northern Ireland.

The annual house price rise was 2.2% for Scotland, 10.9% for England and 11.3% for Wales whereas Northern Ireland saw an overall average decrease of 8.9%.

In other reports, the Council of Mortgage Lenders (CML) released figures showing that the levels of mortgage lending so far this year have remained modest as lenders continue to require a higher deposit although there are now movements in the market as some lenders have started to promote mortgages with guarantors to encourage first time buyers to the property ladder.

First time buyer figures, as a percentage of overall mortgage lending, remain relatively low at 35% of the overall total.

Director General at the CML, Michael Coogan, commented:

“Lending for house purchase still looks modestly positive compared to 2009.

“First-time buyers were particularly affected, perhaps because of the alteration to stamp duty, and in anticipation of the changes arising from the economic and political uncertainty of recent months.”

Those studying their CeMAP exams to become a mortgage advisor will no doubt find that for some time yet, the bulk of the mortgage advice business currently is for those seeking remortgages.