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House prices to stabilise in 2013

15 Jul 2013

The Council of Mortgage Lenders expects the housing market to ‘feel more stable and positive’ next year.

The news comes after the ONS figures, which lag behind other major house price reports by at least a month, showed a 0.2 per cent monthly rise to a UK average of £231,000.

The imbalance in Britain’s property market was laid bare today by official figures showing house prices were up 1.5 per cent in the year to October – but more than half of the rise was delivered by London and the South East.

As well as growth in London, the increases in England were fuelled by a 3.1 per cent annual rise in Yorkshire and the Humber, while prices were flat in the North East and fell 0.8 per cent in the West Midlands, the ONS said.

Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “The mortgage market is still constrained but is showing signs of easing, which will have a positive effect on the housing market.

“The funding for the lending scheme continues to progress but it is a slow burner and no overnight solution for the woes of the market.”

Mr. Harris said he expects to see further cuts to mortgage rates early next year but it would take a while before people with smaller deposits see a significant improvement. Lenders have also toughened their borrowing criteria amid the uncertain economy.

“The problem first-time buyers will have is that while rates may come down, criteria are likely to remain tight. So meeting these could be the issue.”

Lenders have also toughened their borrowing criteria amid the uncertain economy.

“The problem first-time buyers will have is that while rates may come down, criteria are likely to remain tight. So meeting these could be the issue,” continued Mr. Harris.

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