Mortgages and housing market to remain stable predict Halifax?
Halifax predict that mortgages are likely to remain stable. They report in the three months to November this year house prices were 0.6 per cent lower than in the previous three months.
Martin Ellis, housing economist for the Halifax, said:"Overall, house prices have remained remarkably stable in 2011 despite the difficult and deteriorating economic climate and the substantial pressure on households' finances.
The UK average price now is only marginally lower than at the end of 2010. In addition, activity has recently shown a few signs of strengthening a little. We expect the market to remain broadly unchanged in terms of both prices and sales over the coming few months as demand and supply conditions alter little."
Industry-wide, the number of mortgages approved increased by 3 per cent in October, and was 13 per cent higher than in October 2010 which is an indicator of completed house sales. The average UK house price in November was fractionally lower than in December 2010 on a seasonally adjusted basis, at £161,731.
In total, the number of mortgages approved in October stood at 52,700, which was the highest number of approvals for any month in 2011. This seasonally adjusted total was both the highest this year and the highest since December 2009.
Last month the Government revealed proposals to underwrite mortgages for first-time buyers as part of an effort to “unstick” the housing market. The state-backed mortgage indemnity scheme is designed to help around 100,000 first-time buyers purchase a house with only a 5% deposit.
