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10 November 2012

October housing market shows signs of life

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by Gill Montia

October housing market shows signs of life

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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