UK Home Price Increase in March Negated in April
The increase of home prices by more than 1% in March has been negated, as prices fell 1.1% during the month of April. The March surge is the only posted increase of the year, according to the communities and local government department. The average value of a property now sits at 204,439 pounds. This is almost 4% less than the mid-2010 high of more than 212,000 pounds.
Although, the average price of a property is no indication of the sizeable differences which exist across the UK. England average prices have stayed the same through the year of 2011, but have fallen by as little as 1.2% in Scotland to as much as 15.2% in Northern Ireland.
Remortgages slid significantly in the month of April by almost 10,000 to a total of 24,700. The major fall is due primarily to the less probable chance of the base rate falling during that month, or soon after that. The remortgage number is paralleling the urgency at which the base rate hike is talked about. The hotter the fever pitch is regarding the base rate hike equals a larger number of remortgages taking place over the coming weeks.
The Council of Mortgage Lenders commented on this fever pitch which takes place among UK homeowners, saying: "With remortgage activity currently linked to expectations of interest rate movements, future activity will be subdued as an imminent increase in the bank rate is now looking less likely. There was also a fall in remortgage approvals in April, so remortgage completions are likely to remain modest in the coming months."