UK Housing Market Supported by Strong Fundamentals to Finish the Year
The UK housing market is showing no signs of slowing down through the rest of the year, according to recent figures. Mortgage lending is the strongest it’s been in the last seven years and property prices are climbing with each passing month. According to Hometrack, city level house prices are growing at the fastest rate in a decade with asking prices moving higher by more than 4% in the three months to July.
Richard Donnell of Hometrack commented on the current state of the UK housing market, saying: “Low mortgage rates, economic growth and rising earnings will continue to stimulate demand and put an upward pressure on prices.”
London property prices are still on the move up, as an increase of almost 10% has occurred from the period of May to July compared with the same time last year.
Comments describing the rest of the year and the short term forecast on lending were expressed by CML economist Mohammad Jamei. He said: “We expect lending activity in the rest of the year to be underpinned by improving economic fundamentals, but kept in check as any upward pressure on house prices further stretches affordability for some buyers.”
Renters continue to claw forward looking for suitable accommodations due to the shortage and or difficulty in getting on to the property ladder. Simply put, the housing environment is currently not favourable for those searching for affordable housing. Even when it is affordable, it still may not happen due to the high cost of a deposit on the property.