UK Housing Market Posts Encouraging June
The average home price within the UK has hit a fresh twelve month high, prompting thoughts that the worse of the housing dilemma is behind us. The month of June should now be highlighted as a breakthrough month for the market, with the average price of a home increasing 526 pounds, to 168,731 pounds. According to the Bank of England, mortgage loan approvals also reached new ground, as the highest number in thirteen months was recorded.
Robert Gardner, chief economist at Nationwide, commented on the stability within the housing market during the past year, saying: “Stability has been the watchword for the UK housing market over the past 12 months. Sluggish demand for homes, combined with only a gradual rise in the supply of available properties, has helped to keep property prices relatively stable.”
Nationwide also acknowledged the fall from grace the home prices within the UK experienced – from a high of 186,044 in October of 2007, to a low of 147,746 in the first quarter of 2009. That equates to a drop of almost 40,000 pounds, or 21%.
Peter Diggle, property economist at Capital Economics, commented on the mirage appearance the latest figures could hold, saying: “We doubt that the rise in the number of mortgage approvals marks the start of a recovery in housing market activity.”
He added: “Hence, with the benefits of low interest rates being relentlessly eroded by the rising cost of living, the recent stability of house prices is unlikely to be sustained.”