Figures just released by Chesterton Humberts report average house prices have risen by 0.5% month-on-month. This is despite net mortgage lending levels reaching a 15-year low. The average house price rose to £161,677 whilst net mortgage lending by the high street banks fell by £73 million. Chesterton Humberts suggest that homeowners are paying off their mortgage rather than increase their borrowings. This could be an indication the public are still wary about their financial future and a general lack of confidence in the market.
The following observations were also made in their report...
Wales, Midlands and the South West delivered the highest residential total return over a 10 year period at 8.2% p.a. outside of London
A 10.5% rise in residential sales compared to the previous month. This is 5% higher than one year ago
And the average new build capital value rose by 48.9% between the first quarter of 2009 and second quarter of 2012.
The report concludes that the combination of the Olympics, summer holiday period and poor weather is likely to create a static market till the Autumn thereafter a hopeful pick-up.