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  • Housing Market Continues to Decline

    UK Mortgage lending and approval numbers in the UK from the Bank of England has continued to stay at a low level throughout February, as the housing market continues to struggle from the current economic downturn.

    The trend follows on from that of January, with gross mortgage lending throughout February being estimated at around £9.5 billion, according to the Council of Mortgage Lenders (CML). Again forecasts for 2011 are not looking good, with the lenders group declaring that 2011 will be ‘challenging’ for the housing market.

    One of the reasons attributed to the poor figures is the fact that a shortage of homes has caused rents to rise for tenants as they rose by 0.2% in February, averaging £684 a month.

    Lending has remained weak because banks have been restricted on top of the fact that there has been little motivation for new borrowing among people who fear for their job security.

    These tough conditions have also had a negative effect on the rental market in February, with tenants falling behind on their rental payments, and the average price of rent rising, although there were regional variations throughout England and Wales.

  • Many will struggle to sell their house quickly as UK house prices fluctuate

    Government figures were published last week which indicated that UK house prices had fallen by 1.4% in January, when compared with the previous month.

    Many would expect such statistics to be published in a time when the housing market is witnessing a serious slump. However, these governmental figures also showed considerable regional variations in the monthly data which was collated by the Department for Communities and Local Government (DCLG).

    The biggest variations were between the East of England, where prices rose by 2.8% compared to a 3.6% fall in property values in Yorkshire and the Humber.

    The DCLG also reported that the typical value of a house had dropped over the past month, and that we should now expect to pay an average of £208,552 for the cost of a typical home in the UK. At the same time, this also meant that over the last year to January, house prices have increased by 0.5%.

    It is looking like a bleak year for the property market in 2011, with many forecasting that house prices will fall further as the year commences, especially in areas that are suffering from a high level of unemployment.