Property sales recovering slightly

Grovelawn Financial News 03/05/2009

← Mortgage funding rises | News For May 2009 | Lloyds bad debts increase →

Mortgage funding still hard to come by

Figures released from the Nationwide show that property prices are declining at a much slower level than previously.

During April the average price drop was 0.4 per cent, during March prices had increased by 0.9 per cent and the annual decline in property prices also narrowed from 15.7 per cent to 15 per cent. The average property price was also up by 0.6 per cent, a rise taking into account seasonal spikes such as during the Spring when traditionally house hunting begins.

Property prices have stagnated as first time buyers, trying to step on to the ladder, are unable to secure mortgage funding unless they have a sizeable deposit and a record of exemplary credit. Without the first time buyers entering the market, those above them are stuck for purchasers and remain in property limbo.

The Land registry released figures recently outlining the number of transactions that had taken place in the property market. The figures showed that the number of housing transactions in January was 57 per cent lower than in the same month in 2008 and that the sales of larger family homes valued at between £250,000 and £400,000 were the worst to be affected by a drop of 67 per cent.

← Mortgage funding rises | News For May 2009 | Lloyds bad debts increase →

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