The latest indexes suggest that house prices crept up by a mere £997 in June.
The Nationwide index shows that prices have remained flat since May but are down 1.1% compared to this time last year. The Halifax records a 0.1% increase last month but a year-on-year decrease of 4.2% and the Land Registry says there has been an annual decrease of 2.3%.
Contractor mortgage approval levels are at their lowest since the start of the year and overall forecasts for the housing market are not optimistic. The RICS believes we are heading for a buyer’s market as more people put their home up for sale whilst the latest report from Rightmove says asking prices could fall by as much as 7%.
The chief economist from Nationwide, Robert Gardner, said that are encouraging developments, such as increased employment and consumer confidence, but these have not yet reinvigorated the housing market.
From a regional perspective, year-on-year figures show that house prices are down in all areas except London where prices are at an all-time high. Nationwide says residential property prices in the Capital rose by 2.0% while in Northern Ireland and Scotland they dropped by 4.1% and 3.2% respectively.
Meanwhile experts are warning first-time buyers of the potential danger of taking out a joint mortgage with friends. Britannia operates a Share to Buy scheme and the housing minister, Grant Shapps, has suggested that similar schemes could be a way for first-time buyers to get a foot on the housing ladder.
Although such sharing schemes make mortgage repayments more affordable, friends do fall out and it can be very difficult to get out of a mortgage once you’re tied to it.
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