October housing market shows signs of life
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by Gill Montia
October brought welcome signs of life to the housing market, with the value of the average property in England and Wales rising 0.1% (September: -0.1%), according to the LSL/Acadametrics index.
The monthly increase was the first since May and sales leapt 24% achieving their second-highest level for over two years, albeit on the back of September’s post-Olympic slump.
The annual rate of change stood at +2.3% in October (September +2.4%) with a typical dwelling changing hands for £225,954.
The housing market analysts also report “tentative” signs of a thaw in the mortgage market as banks begin passing on the benefits of the Government’s Funding for Lending scheme.
However, LSL spokesman, Richard Sexton, cautions: “The capital banks are required to set aside for each higher risk loan is likely to act as a drag on high loan-to-value lending, a factor which may prevent a return to anything like the number of first-time buyers in the market before the initial credit crunch in the foreseeable future.”
As a result, equity rich and wealthier buyers will remain key to monthly sales activity, also for the foreseeable future.
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