House Prices in UK Increase Due to Assistance from London Housing Market
The housing market continues to struggle despite cheap borrowing rates for consumers. Deposits remain out of reach of many without assistance from family members and lending criteria is much more restricted than it was in years past during the housing market boom. Remortgages have remained subdued as well when compared to normal levels before the credit crisis and recession. House prices continue to decline this year and while that is good news for the few buyers in the market, it hurts homeowners who rely on built equity to obtain the best remortgage rates.
Recent data from the LSL Property Services/Acadametrics House Price Index revealed that house prices on the average increased in the month of August by 3 per cent. This still left the average on a 2.2 per cent decline when compared to last year’s level. Much of the increase in prices on the average is credited to the increase in London property prices. The average UK property is now at £219,078.
David Newnes, director of LSL Property Services, remarked on the data saying “Mortgage finance is very cheap at present – it’s just hard to get if you don’t have a hefty deposit. With major lenders like Santander cutting their mortgage rates by 1% this week, buyers who are able to put up at least a quarter of the value of their purchase can pick up bargains. The fact that the properties are so reasonably priced is also helping allay lenders’ fears about borrowers’ ability to pay for their loans.”