Mortgage News UK House Prices Up 12percent According To Latest Survey
25 November 2014 / by Isabel Buxton
This month’s House Price Index, released by the Office of National Statistics this week, shows that house prices increased 12.1% over the year up to September 2014.
House prices continued a strong increase across the UK. London, as usual, led the pack, with an 18.8% annual rise in house prices in the capital. But other areas of the UK were not far behind – house price annual inflation was 12.5% in England, 5.8% in Wales, 7.6% in Scotland and 10.9% in Northern Ireland.
The House Price Index is calculated using data from mortgage transactions obtained from the Council of Mortgage Lenders, and is published on a monthly basis.
A boost to housing equity
Brian Murphy, Head of Lending at Mortgage Advice Bureau, commented that: “For many of the UK’s homeowners – including more than 11 million mortgage holders – the recovery has delivered a long awaited boost to their housing equity. Recovering property values are giving many the leverage they need to negotiate a better mortgage deal with lower monthly repayments, so it’s unsurprising that remortgage applications are rising as a result.”
Murphy also commented on the situation many first time buyers find themselves in, adding: “It is important that the industry does not become complacent and forget its responsibility towards first-time buyers who are not able to save for a hefty deposit. Widespread availability of higher loan-to-value (LTV) products on new builds as well as existing properties will be vital to give potential buyers the leg-up onto the property ladder they need.”
An attractive market
Director of Reeds Rains and Your Move estate agents David Newnes adds: “According to our own research, October saw the highest level of house sales completed in a month since November 2007.” Meanwhile, Peter Rollings, who is the CEO of Marsh & Parsons, stated that “the housing market recovery is still showing spritely movement, and good ground has been covered in property values compared to a year ago” adding that “an attractive combination of greater supply of property, excellent lending conditions and more realistic asking prices are attracting good amounts of potential buyers to the market.”
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