People looking for a contractor mortgage may be interested to learn that Rightmove says it now costs more than twice as much to buy a property in the south than it does in the north.
House prices in southern areas such as East Anglia and London have increased by 4.7% this month, whilst those in the north have fallen by 0.7%.
The average price of a property in the south now stands at £336,743, compared to just £164,347 in the north and that it is largest difference ever recorded.
The property website also said that the mortgage famine may be easing as home loan approvals rose to their highest level for 23 months. Data released by the CML last week showed a 30% year-on-year increase in the number of mortgages taken out. Mortgage lending to both people moving home and first time buyers are now at their highest levels for more than 12 months.
Rightmove’s director, Miles Shipside, said rising asking prices and wider access to home loans are signs that demand is increasing and this could give home owners grounds to hope that the housing market is going to make a recovery.
People who are trading up will be able to benefit although they will find it’s a bigger financial leap due to rising prices and a shortage of supply. But first time buyers will have to pay more or compromise on the property they buy.
A different report, this time from the Department of Communities and Local Government revealed recently that house prices are still 1.3% lower than last year, despite inching up over the last three months.
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