Mortgage And Uk Housing Markets Experience Fluctuations

Mortgage And UK Housing Markets Experience Fluctuations
Mortgage lenders and property agencies have just released their latest figures for the​ UK housing market displaying some conflicting results but the​ overall mood from analysts appears to​ be one of​ optimism for improvements in​ housing market activity.
Property prices are on​ the​ rise again according to​ the​ latest survey by the​ Rightmove property agency website .​
They reported the​ largest average monthly house prices rise in​ two years during February to​ leave the​ average residential house asking price in​ England and Wales at​ £201,​600.
In their report,​ Rightmove put the​ record asking prices down to​ a​ shortage of​ sellers and increasing demand,​ especially a​ return of​ buyers at​ the​ lower end of​ the​ market which should have a​ knock on​ effect further up the​ property ladder .​
However Miles Shipside,​ Rightmove’s commercial director,​ sounded a​ note of​ caution,​ Sellers must not get too ambitious or​ the​ recovery could run out of​ steam as​ affordability is​ over-stretched again.
The Rightmove findings seems to​ stand in​ contrast to​ the​ figures recently released in​ the​ FT House price index,​ which shows that the,​ recovery of​ house prices since the​ Autumn has been extremely muted and did not gather pace at​ the​ start of​ 2018 .​
The FT also reported that two other separate sets of​ secured loans data published about the​ same time,​ showed mortgage lending for January was down on​ the​ previous month but higher than the​ figure for January a​ year ago.
The FT house price index shows a​ subdued market rather than the​ more buoyant figures from Rightmove,​ or​ the​ lenders,​ the​ Halifax and the​ Nationwide .​
The FT believes that their figures based on​ Land Registry data provide an​ accurate representation of​ the​ market,​ with the​ figures from the​ lenders’ bouncing around,​ in​ ways most unlikely to​ reflect reality.
Many of​ those who are currently seeing a​ restrained increase in​ the​ market figures are looking towards possible future Government action through the​ Bank of​ England to​ increase sales .​
Howard Archer,​ the​ chief UK economist at​ financial analyst Global Insight,​ feels that an​ interest rate cut is​ on​ the​ cards in​ the​ early part of​ 2018 .​
Mortgage comparison site Moneynet believes that a​ widely expected Bank of​ England base interest rate cut will lead to​ the​ housing market,​ getting a​ shot in​ the​ arm with many people looking for the​ right mortgage package to​ get them on​ the​ housing ladder.
Independent mortgage adviser from John Charcol,​ Ray Boulger,​ feels that an​ interest rate cut which will help the​ housing market is​ on​ the​ cards .​
I​ expect to​ see at​ least two quarter point reductions in​ base rate this year and house prices to​ rise by about 5.5 per cent .​
The Council of​ Mortgage Lenders most recent figures indicate mixed results with gross mortgage lending in​ January up by 32% to​ £23bn compared with the​ £17.4bn recorded in​ January 2018,​ however this was down from December’s high of​ £26.9bn.
Although the​ recent reports appear to​ show contradictory and inconclusive results,​ Howard Archer commented that,​ Although the​ British Banking Association showed some slowdown underlying mortgage lending in​ January,​ this followed a​ particularly strong performance in​ December .​
Overall the​ data indicate the​ marked improvement in​ housing market activity - borne out by the​ latest report from Rightmove.
All information contained in​ this article,​ is​ for general information purposes only and should not be construed as​ advice under the​ Financial Services Act 1986 .​
You are strongly advised to​ take appropriate professional and legal advice before entering into any binding contracts.
Useful resources:
Financial Times house price index -
Moneynet mortgage comparisons -

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