Bad News for Homeowners, House Prices Continue Fall & Will Keep Falling
- By Howard Ogollegos
- Published 10/28/2011
- Real Estate
- Unrated
House prices are now 2.3 per cent lower than they were a year ago. That's the latest finding from the Land Registry who also report that property prices in England and Wales fell by 1.1 per cent in March 2011 alone.
There has been much conjecture in the media about the direction of house prices over recent months with some experts arguing that prices have remained static whilst others painting a more gloomy picture. The mortgage industry has also come in for much criticism over the lack of finance available to borrowers.
Whilst January 2011 showed slight increase in house prices, the Land Registry figures show a consistent month on month decline in values since August 2010. As they take their data from completed property sales their figures are arguably the most accurate that are available and they show that the market is still struggling to stabilise.
The only region to have seen any price growth in the last year is London, where prices rose by 0.8 per cent. This is compared to Wales where property values fell by 7 per cent and the North East of England where 9 per cent has been wiped off the average house price.
As consumers slowly begin to rebuild their trust in banks and building societies and with property becoming more affordable many people expected the housing market to recover more quickly.
HMRC have confirmed that the number of house sales had increased by almost 10,000 in March from a month previously, making the new figure of houses sold
in March just over 65,000 in the UK.
Bank of England figures also show that mortgage approvals have risen in the first quarter of 2011 and they expect the number of transactions to continue to rise over the next few months. As the Bank of England Base rate remains at its record low level of 0.5 per cent, remortgage rates remain extremely competitive and these are attracting many borrowers.
The number of approved home loans that are yet to complete rose by 1,000 in March with slightly under 50,000 mortgage deals being made over this period. This figure, although conservative, is good news as it is greater than the average number of mortgage approvals over the past 6 months. This said the complete number of house sales during the first 3 months of the year was a mere 174,000; to put this figure in context; it is the second lowest figure across this period since records began.
Even though lots of homeowners are still reluctant to move house, cutting edge remortgage deals mean it is certainly worthwhile looking around to discover who has the best mortgage deals of offer. When a mortgage deal ends, the rate of interest charged reverts to the lender's Standard Variable Rate (SVR), which is often high and expensive for the borrower.
In previous years, remortgage deals a popular way for asset rich but cash poor homeowners to raise finances for essential home improvements or luxuries. In these tough economic times, however, this is far less common. Re-mortgages are generally completed as people try to find new ways of saving money on their monthly mortgage costs - the biggest household expense.
There has been much conjecture in the media about the direction of house prices over recent months with some experts arguing that prices have remained static whilst others painting a more gloomy picture. The mortgage industry has also come in for much criticism over the lack of finance available to borrowers.
Whilst January 2011 showed slight increase in house prices, the Land Registry figures show a consistent month on month decline in values since August 2010. As they take their data from completed property sales their figures are arguably the most accurate that are available and they show that the market is still struggling to stabilise.
The only region to have seen any price growth in the last year is London, where prices rose by 0.8 per cent. This is compared to Wales where property values fell by 7 per cent and the North East of England where 9 per cent has been wiped off the average house price.
As consumers slowly begin to rebuild their trust in banks and building societies and with property becoming more affordable many people expected the housing market to recover more quickly.
HMRC have confirmed that the number of house sales had increased by almost 10,000 in March from a month previously, making the new figure of houses sold
Bank of England figures also show that mortgage approvals have risen in the first quarter of 2011 and they expect the number of transactions to continue to rise over the next few months. As the Bank of England Base rate remains at its record low level of 0.5 per cent, remortgage rates remain extremely competitive and these are attracting many borrowers.
The number of approved home loans that are yet to complete rose by 1,000 in March with slightly under 50,000 mortgage deals being made over this period. This figure, although conservative, is good news as it is greater than the average number of mortgage approvals over the past 6 months. This said the complete number of house sales during the first 3 months of the year was a mere 174,000; to put this figure in context; it is the second lowest figure across this period since records began.
Even though lots of homeowners are still reluctant to move house, cutting edge remortgage deals mean it is certainly worthwhile looking around to discover who has the best mortgage deals of offer. When a mortgage deal ends, the rate of interest charged reverts to the lender's Standard Variable Rate (SVR), which is often high and expensive for the borrower.
In previous years, remortgage deals a popular way for asset rich but cash poor homeowners to raise finances for essential home improvements or luxuries. In these tough economic times, however, this is far less common. Re-mortgages are generally completed as people try to find new ways of saving money on their monthly mortgage costs - the biggest household expense.
Howard Ogollegos
Howard O'Gollegos writes for Just Commercial Mortgages.com the UK's No.1 site for the latest commercial mortgage rates and commercial property finance news.
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