UK Housing Market Improving for Multiple Reasons
Encouraging signs the housing market is making a comeback continue to surface as the government backed Funding for Lending scheme is impacting lending figures. This is quite favorable news for the market which is the lynchpin for more recovery in other parts of the UK economy. Although remortgages are not making huge waves in the amount of activity which is present today, other figures are making positive steps in the recovery direction.
Mark Harris, of mortgage broker SPF Private Clients, commented on the latest data which is reason for more consumer confidence present in today’s market. He said: "The Funding for Lending scheme is making more money available at cheaper rates to lenders, which is being passed onto borrowers, resulting in some of the cheapest mortgage rates ever seen.”
Harris continued: "Two-year fixed rates are now available from 1.89%, while five-year fixes are pegged as low as 2.69%. This is being reflected in the growing number of first-time buyers, which is significant for the health of the housing market as they really are its lifeblood.”
Peter Bolton King of Rics remarked on how the most difficult times could be in the past. He said: "It is interesting to see that the amount of completed transactions is on the rise, as confidence returns to the marketplace.
"While it is still very early days to talk about a comprehensive market recovery, activity levels are still encouraging and there is some optimism out there that things could continue to improve.”