Construction Loans News:- House prices for the three months to May rose by 5.2 per cent compared with the same period last year, according to Halifax data.
They were also 2.5 per cent higher than the previous quarter and last month’s figures showed a monthly rise of 0.5 per cent.
The lender highlighted Bank of England data which revealed the number of mortgages approved for buying houses rising by 5.9 per cent in April to 66,261.
Halifax’s managing director, Russell Galley, attributed the positive reversal of the previous months’ market softness to high employment and low interest rates.
“The overall message is one of stability. Despite the ongoing political and economic uncertainty, underlying conditions in the broader economy continue to underpin the housing market, particularly the twin factors of high employment and low interest rates.”
Cautious optimism for the housing market
But he said industry data revealed there were no real changes in the number of houses being sold from month to month. The Royal Institution of Chartered Surveyors’ residential market survey for April continued to show subdued demand for and supply of housing. But price and sales expectations among respondents showed a small improvement for the third month running.
“While current conditions may help those looking to make their first move onto the property ladder, existing homeowners will doubtless be considering long-term house price growth which continues to look subdued in comparison to recent years,” said Galley.
However, he added that the current “trend of stability” was likely to continue provided employment stayed high and interest rates were kept low.
The Bank of England figure of 66,066 mortgage approvals for home buying in April was 1,118 above the previous 12-month average of 65,143. HMRC’s April figures of 99,420 home sales were close to the five-year average of 101,249 and they were slightly above the previous 12-month average of 99,322.
Trussle mortgage expert, Dilpreet Bhagrath agreed with Galley that the market looked steady. He said: “With mortgage approvals on the rise, this could be the time for first-time buyers to take hold of this stability and look for the first home.”
Finance brokers Hank Zarihs Associates said the housing market had proved resilient despite the current political uncertainty. The company added that the strength of the UK economy was reflected in SME house builders’ healthy demand for construction loans and property development funding.
