Boost in the housing market
Recent figures show that there has been a rise in the number of homeowner secured loan by 23 percent. There has also been a rise in the prices of houses by 2.6 percent. It is forecast that there will be a price growth over the whole of the year.
The Council of Mortgage Lenders (CML) said today that the number of home owner loans taken out for purchases rose by almost a quarter in June this year. This is a further sign that the housing market is stabilising.
In addition, a report from surveyors indicated that the price of houses could post a rise over the year as the demand increases. The local government department and government’s communities also said that the house prices increased by 2.6 percent in the second quarter.
According to the CML 45,000 mortgages were completed in June. This was 23 percent more than in May and only 6 percent less than this time last year.
The value of house purchase loans rose by 26 percent over the month. However falling prices and the fact that lenders insisted on buyers placing higher deposits, meant that, at 5.9 billion it was still 17 percent lower than 12 months ago. There was also a large increase in the number of first time buyers, who took out 17,200 mortgages, an increase of 26% from May.
However the number of new borrowers was still 7 percent down on last June. Some of the fall is a result of the tighter lending restrictions and the withdrawal of thigh loan to value mortgages.