The latest survey from Nationwide has shown that in January of this year the average house price increased by 1.2 percent, and this took the annual rate up to 8.6 percent. This has pushed the annual rate of increase up to 8.6 percent.

The average property price in the UK has now increased to £163,481 as a result of the latest increase. The Land Registry also carried out a separate survey, which showed that annual changes in property values had shown an increase for the first time since May 2008.

Officials from the Nationwide have said that house prices have now been increasing for nine consecutive months, and with the rate of increase being at its fastest since October 2007. The lender said that the continuing increase in property prices had come as something of a surprise taking into account that the UK had been in such a long and deep recession of the past year.

The chief economist from the Nationwide stated: “House prices strengthened their upward momentum at the start of 2010, increasing by a seasonally adjusted 1.2% month-on-month in January. Unless there is a fall in property values in February, annual house price inflation is likely to move into double-digit territory next month for the first time since May 2007.”

Nationwide predicts good news for house prices is a post from: Glitec Loans

The figures relate to sales of properties in December of last year, with the figures showing that property sales reached a two year peak during the month.

The data was released by HM Revenue and Customs, and showed that during the month of December around 104,000 sales involving properties that were £40,000 or more in value were completed. This signifies the first time since December of 2007 that property sales have exceeded the 100,000 mark.

January of last year saw property sales reach their lowest level, when the number of sales for the month slumped to a paltry 41,000. This was the lowest level of monthly sales seen since records began back in 1977. Many industry officials have been surprised at how property prices and sales have picked up in the latter part of last year, but many are still predicting that both sales and prices of properties in the UK will remain pretty static over the course of this year.

Overall the number of properties sold last year came in at slightly lower than the year before, coming in at 848,000 compared to 920,000 in 2008. However, the difference between last year and 2007, when the property boom was still in full swing, was far greater with 1.62 million properties being sold in 2007.

Sales of properties reach highest levels in two years is a post from: Glitec Loans

It appears that the more pessimistic economists and experts may have been correct in their predictions, as according to recent report there was a slight drop in property values in August. The figures were released by the Land Registry, which stated that there was a drop of around 0.1 percent between July and August. Whilst this was only a very slight drop it was nevertheless a drop, which will disappoint those that thought property values would keep on rising.

The figures from the Land Registry suggest that the house price revival may not be one that is going to be sustained, although officials from the Registry said: “The annual rate of decline is continuing to slow… from a low of approximately -16% experienced in February.”

HM Revenue and Customs has also recently reported that there was also a slight drop in property sales levels in August. In addition to this the number of mortgage approvals in August also fell according to figures from the British Bankers Association.

One official said that property increases seen over reason months were due to a rise in demand, stating: “A surge in demand and a shortage of quality property on the market is the principal reason prices are increasing. The big question now is how much pent-up demand from frustrated potential buyers remains in the system to maintain the momentum.”

Another official said: “The property market is surprisingly buoyant at present and sellers are achieving some attractive prices. Just how long this will last, though, is by no means certain.”

Slight drop in house prices in UK is a post from: Glitec Loans

The survey was carried out by the Building Societies Association, and showed that whilst mortgage lending was still restricted compared to a couple of years ago the majority of Brits thought that it was starting to ease. This, coupled with the low interest rate and reports that the property market is showing signs of improvement, led the majority of those surveyed to conclude that now was a good time to buy.

Out of the people that were polled by the Building Societies Association around 58 percent either strongly agreed or agreed that now was a good time to buy residential property.

The survey was conducted by YouGov on behalf of the Building Societies Association and involved polling over two thousand adults in Britain. The Royal Institute of Chartered Surveyors has already reported an increase in both activity in the property market and in sales levels in the three months to September.

One official from the Building Societies Association said that consumer confidence in the property market was improving, and he stated: “Homebuyers are increasingly viewing the property market in a positive light. With mortgage availability perceived to be increasing, prospective buyers are more confident of securing funding to purchase a property.”

The survey showed that only 19 percent of those polled did not think that now was a good time to buy, and this was a sharp drop from a similar survey that was carried out last year. In the previous survey nearly 50 percent has said that it was not a good time to buy, and just 34 percent had said that it was a good time to buy.

Many Brits think this is the time to buy a home is a post from: Glitec Loans

Some industry officials have said that these figures suggest that there is increased activity in the UK housing market. The figures were recently released by the Nationwide Building Society.

The annual rate of decline in house prices for April was already at its slowest in nearly two years, come in at around 15.5 percent. However, the figures show that for the month of May this annual decline slipped even further, coming in at 11.3 percent. The average house price is now estimated at £154,016.

Over the past three months property prices have fallen by just 0.5 percent according to the figures, which is the lowest quarterly decline since January of 2008.

However, despite the encouraging figures officials are not yet prepared to report a turnaround in the mortgage and property markets.

Martin Gahbauer, Nationwide’s chief economist, said: “During the downturn of the early 1990s, there were many months during which prices rose, only to fall back down again in subsequent periods. In the current downturn, the combination of rapidly rising unemployment and tight access to credit implies that the last of the price declines has probably not been seen yet.”

Another industry expert said: “The rollercoaster ride for house prices continues. Up in March, down in April, back up in May. This volatility is typical of a housing market dragging along the bottom and mirrors the testing economic conditions.”

Another added: “First time buyers should not be unduly worried at this point, as there is a good chance prices will fall again slightly in the quieter summer months. However, anyone seriously considering getting onto the property ladder needs to commit in the next six to nine months or they could well miss the bottom.”

Slight increase in house prices reported for May is a post from: Glitec Loans

The level of house price falls were at their slowest in more than a year for April, and with interest rates at an all time low and house prices down by over 20 percent from their peak, a rising number of potential buyers have been returning to the market and showing signs of interest. However, despite this encouraging news industry officials said that mortgages were still sliding.

During the month of April only 32 percent of postcode districts reported house price falls, and this compared with 59 percent for the month of February.

The average cost of a home in England and Wales fell by 0.3 percent for that month, according to the figures. However, whilst this has fuelled speculation about a recovery in the housing market officials were quick to point out that despite increased interest from would be buyers the level of mortgage approvals had still been falling.

One official that was involved in the research said: ‘While the pick up in demand and sales volumes is real, it is important not to lose sight of the broader picture. The volume of housing sales is set to be less than half the level that would constitute normal market conditions. In the rush to seek out the green shoots of recovery, the importance of first-time buyers in driving the market is often underestimated, and the fact remains that the majority remain affordability constrained and unable to access mortgage finance.’

Another mortgage expert added: ‘Although some highly competitive products have entered the mortgage market in the last couple of weeks, and there has been a definite rise in enquiry levels, lenders generally are still being very cautious and this caution is reflected in the latest BBA mortgage lending figures. The time is ripe for people to start looking for property again to take advantage of low house prices and mortgage rates, but unless you have a substantial deposit this is still proving very difficult.’

Buyer interest increases and house price falls slow is a post from: Glitec Loans

Property values fell by 0.4 percent for the month of April, according to the Nationwide figures, but officials from the building society said that the annual rate of decline has started to ease off somewhat.

It is thought that amongst the reasons for the slowdown in the rate of decline is the fact that more cash rich buyers are coming forward to purchase property and take advantage of lower house prices and rock bottom interest rates, which has helped to slowdown the rate of decline. Mortgage approvals for the month of March had also increased compared to the previous months, indicating a slight increase in the number of people purchasing properties.

One leading economist said: ‘The fact that house prices only fell by 0.4% month-on-month in April following the surprising rise of 0.9% in February suggests that the underlying rate of decline may now be starting to ease. Furthermore, there are increasing signs overall that housing market activity may have passed its worst point, helped by the substantial fall in house prices from their 2007 peak levels and sharply reduced mortgage rates. Nevertheless, housing market activity remains very low by past norms and our expectation is that the pick up will be both gradual and fitful for an extended period given very poor economic fundamentals and still relatively tight credit conditions.’

An estate agency official added: ‘The inherent volatility at the heart of house prices is mirrored once again in Nationwide’s April figures, which come on the back of March’s 0.9% bounce. A sideways-moving market like this, with the odd blip up or down, is how things look set to continue given the highly uncertain economic climate. Consumer confidence is weaker than it has been for many years and the property market will not recover until it returns.’

Slight fall in house prices for April is a post from: Glitec Loans

March saw new buyer enquiries increase for the fifth consecutive months according to RICS, but it did add that not many of these enquiries were converting into sales, with the number of properties being sold per month by estate agents still low.

There is hope that the level of property sales will pick up over the course of this year, but officials have said that things are still very tough for first time buyers, who usually keep the property market buoyant.

A spokesperson for the Royal Institute of Chartered Surveyors said: “Buyer interest is starting to gain real momentum, but will remain frustrated while mortgage finance is scarce. The market is still in a fragile state, but with demand continuing to pick up, there may be more signs of stabilisation in the coming months.”

A number of factors are thought to have been responsible for the increase in interest from buyers. The all time low base interest rate in the UK, which stands at just 0.5 percent, is one major factor that has increased buyers’ interest. Also, falling house prices and predictions that the housing market may be bottoming out has also spurred many on to make enquiries. Finally, many cash rich consumers may be turning to the property market because of the paltry returns that they are getting on their money in other areas.

One official said: “Those with cash in the bank on close to nil returns are considering and often actually moving back into the property market.”

Surveyors claim increased interest from buyers is a post from: Glitec Loans

A recent announcement by HSBC, one of the leading mortgage lenders in the UK, shows that for the first time in almost two years deals are now becoming available for those wishing to purchase their first home. This banking giant is offering mortgages to qualified first time home buyers with only 10% deposit on the loan.

Experts in the real estate industry are hoping that the other UK banks and financial institutions will follow the example of HSBC. However, even without this deal, there are ways for people to purchase their first home without having a lot of cash available for a large deposit. The market is not closed completely if you know where to look.

HomeBuy Direct is a government sponsored program which provides subsidies for first-time home buyers. Thousands of borrowers in England could qualify for a mortgage subsidy for up to 30% of the purchase price of the home. The government has allotted £400 million for this initiative, which means there is plenty of money available. It is estimated that 18,000 families could benefit from this program but since they do have to apply it is best to do so early before the funds run out.

HomeBuy Direct is a government response to the failing real estate industry. There is eligibility criteria associated with acceptance into the program. The homes, for example, must be new homes built by a builder that has been approved by the government. No such program exists in Scotland and Wales at the present time, but talks are underway with a view to making one available to the public.

The applicants for the HomeBuy Direct program must also meet certain restrictions. The annual household salary must be less than £60,000 and they must not have previously owned a home. In addition, they must be renting at the time they submit their application. Another criteria applicants must meet in order to qualify is that they have not been able to afford any of the homes that are for sale within a reasonable distance from their place of work.

One of the first families to be accepted for the subsidy, Rebecca Wellington, Michael Leach and their four-year old daughter, have accepted a home in Gloucester. This house is due to be completed in June by Persimmon Homes. The couple has been trying to obtain a home for years and are delighted to have been able to take advantage of this program.

According to Rebecca, “We always wanted to buy, but with prices as they were it seemed out of reach.”

It was actually Rebecca’s mother who found out about the program and brought it to her attention.

The homes bought under the HomeBuy Direct program must have been purchased before March 31. The deals are on a first-come, first-served basis because each of the builders participating in the program has been given a set amount of money. Once that limit has been reached buyers can no longer sell homes under the subsidy program,

Markets are Finally Opening for First Time Home Buyers is a post from: Glitec Loans

Officials from RICS said that the sales number were the lowest since it started records over thirty years ago.

House price falls are said to have gathered pace over the autumn, according to government data. However, the RICS report showed that as a result of lower house prices and dramatic falls in the base interest rate the number of enquiries from would be buyers actually increased for the period.

However, despite this encouraging news officials have said that as a result of decreasing availability of mortgage finance the number of property sales is likely to stay low for some time.

Another reason why many potential buyers may be nervous about entering the market, other than the lack of mortgages, is because house prices have plummeted over the past year and are set to continue falling, so many may be fearful of falling into negative equity. In addition to property sales falling the number of new properties being built by housing construction companies has also plummeted due to lack of demand.

One official from RICS said: “Buyer interest is now at levels not seen since 2006 but without mortgage finance the housing market is at a standstill and transaction levels at an all-time low. First-time buyers and owner-occupiers are now stuck in a market which does not fulfil their aspirations.”

He said that it was important that the issue with mortgages was sorted out by the government and the banking industry, adding: “Without this help, there is a real danger that homebuyers will be frozen out of the market, transaction levels and prices will fall to new lows, repossessions will increase and negative equity will become commonplace. Together, this has the potential to push the country deeper into recession.”

House prices still falling is a post from: Glitec Loans