19 Jun

Mortgage Review

As we enter into the sunnier months of the year the UK property market remains steady in light of recent reports of lower mortgage approvals and the launch of the Mortgage Market Review. The latest statistics from the British Banker’s Association shows that the overall value of mortgage borrowing continues to increase; reaching a six year high, but the number of mortgage approvals has fallen to a three month low. When reviewing the 3 month period, national data recorded by the Agency Express Property Activity Index indicates that figures are not yet heavily impacted by the MMR and that properties ‘Sold’ nationally have marginally decreased by -0.20%. While the outcome of fewer mortgage approvals and the MMR process may take a few months to show full effect on the market, the latest month on month figures from Property Activity Index remain stable. Regional month on month data recorded by index highlights London as a top performer, reporting a vigorous +28.40% increase in new listings ‘For Sale’ and a +2.20% increase in properties ‘Sold’. However over a three month average properties ‘Sold’ declined by -4.20% which could be reflective of inflated prices and the low uptake in the ‘Help to Buy‘ incentive within the capital, reported at only 0.6%. Looking at performance across the rest of the UK, a further five regions recorded by the Property Activity Index report increases in properties ‘Sold’. Prominent performer Central England records their best figures for properties ‘Sold’ in May since the Property Activity Index’s first records in 2007; rising by +18.50%. The East Midlands rose by +7.90%, London by +2.20%, Scotland by +0.80% and the South West by +8.60%. Whereas this month’s largest declines were made by the South East recording their first drop in four consecutive months; falling by -4.60% on properties ‘Sold’ and by -3.40% in new listings ‘For Sale’.

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