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Gordon & Rumsby: Property Market Update

May 5, 2012

Gordon & Rumsby Estate Agents In Devon & Dorset

Property Market Update

According to the latest statistics, the average house price increased in the UK by 0.3% in the year from February 2011 to February 2012.

The London and the South East market are mainly responsible for the gain in England, as the rest of the country edged downwards.  Northern Ireland suffered a substantial drop in their average house price.

  • England +0.4%
  • Scotland + 1.1%
  • Wales -0.5%
  • Northern Ireland -9.7%

Mortgage lending in March 2012 was up a whopping 30% on the previous month and 17% higher than March 2011. The increased activity can probably be attributed to buyers rushing to beat the stamp duty holiday deadline on March 24th. So it will be interesting to see if the activity continues or if it starts to slide again.

Interest rates are still low, so this may help, but what happens when the rates start to go up again? Lenders are offering more two, three and five-year fixed loans, but almost virtually none that are fixed long-term. Wouldn’t it be great if they offered 30 year fixed loans like they do in the US!

The consumer organization ‘Which?‘ has come forward to say that consumers need more protection against unreasonable interest rate rises, and that lenders and the Financial Services Authority (FSA) should do more to allow homeowners to fix their payments, and not take advantage of a borrower who can’t move to another lender. ‘Which?’ believes that there should be more competition within the lending market.

Contact Us @ Gordon & Rumsby on the website or call 01297 553768

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