Prices Continue To Fall
The property market in the UK has kept to a slight fall in average prices, continuing on from last month. Prices are now back at 2006 levels, rises are not expected to rise in 2010, although falls are not expected to reach the depths of 2008.
Rising countries are now far outstripping the UK for growth in the market overall, add to this the fact that many purchases are now made from outside the UK due to falling prices and you see the weakness in the market.
As mentioned, mortgage lending is actually up, the number or properties being sold rises by the month and it seems there is a sounder foundation to the market than before when many expected a quick recovery within a year. The rising number of properties being sold and the stronger market that is based on greater numbers of sales, is good for the individual home owner in the UK. A slow growth is one that wont fall back like the gains we saw late in 2009.
Low interest rates it seems are to be kept up, the BOE/government seem reticent to lose goodwill they have created and the media are predicting another few years of this concession at least. With no month to be made from selling property and none from savings and various kinds of mortgage to be banned (moving these borrowers onto other more expensive ones) we need something to keep us afloat!