15
Jun
HOUSE PRICE INFLATION BACK TO 10% SAYS GOVERNMENT
Annual house price inflation is back in double-digits, according
to government figures.
The Department for Communities and Local Government (DCLG) said
prices in April were 10.1% higher than a year ago.
That was the highest rate of inflation since October 2007, when
prices were on a downward trend.
UK house prices rose by another 0.4% in April, putting the cost
of the average UK property at £207,516.
Annual house prices rose in all UK countries except Northern
Ireland in the year to April 2010, the DCLG said.
Annual house price growth was 10.9% in England, 2.2% in Scotland
and 11.3% in Wales.
But in Northern Ireland prices fell by 8.9% on average in the
year to April.
Mortgage lending
Separate figures from the Council of Mortgage Lenders (CML) show
that mortgage lending this year has been modest.
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The low share of the market shows that getting a mortgage remains
problematic for first-time buyers who tend not to have a
substantial deposit
CML
It said the number of loans granted to home buyers fell by 9% in
April to 40,000.
The CML explained that this was a seasonal effect due to the
Easter holidays, and said lending was still 15% higher than a year
ago.
"Lending for house purchase still looks modestly positive
compared to 2009," said Michael Coogan, director general of the
CML.
"First-time buyers were particularly affected, perhaps because
of the alteration to stamp duty, and in anticipation of the changes
arising from the economic and political uncertainty of recent
months."
However the proportion of loans made to first-time buyers was
just 35% of the total - the lowest figure since September 2007.
With only a gradual easing of mortgage rationing in the past few
months, first time buyers are still having to put down an average
25% deposit when buying a new home.