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Rising stock benefits buyers as threat of rate rise recedes

“It has been a very positive spring for developers. As well as increasing numbers of new homes coming to market and stable prices, the threat of an imminent interest rate rise has receded and the budget offered the strongest indication yet that the government has recognised the importance of supporting housebuilding.

“The mortgage market remains the overriding limiting factor holding back the market. Housebuilders have innovated as best they can to overcome the stranglehold, for example by introducing new shared equity schemes, but the market will not be able to operate normally until the deadlock amongst lenders is overcome.”

April 2011

Average new home price: £219,766

Monthly % change: +0.7%

Three monthly % change: +1.8%

Annual % change: -0.2%

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0 thoughts on “Rising stock benefits buyers as threat of rate rise recedes

  1. Alan Cooper says:

    Moderate house price growth is what the market needs it gives confidence about property investment (the property value needs to increase more than the interest you pay).
    Rapid price increases lead to bubbles (that we all know to well, burst).
    Steve is right that mortgage lending is the biggest factor holding back the return to a fluid market.
    What are they afraid of? there has not been the massive increase of repossions and distressed sales as forecast.
    A mortgage is not just the right of the lucky elite who’s parents can afford to give them a £35k start. It should be for the retail assistant manger, the butcher, the laborer, the baker & the candle stick maker (if there is still such a thing?).
    If your looking to buy a home contact us.