UK house prices little changed in April

IveSeenTheLight

http://www.nationwide.co.uk/NR/rdonlyres/BEB901F1-9E98-4A0B-AB43-53C77F728673/0/Apr_2013.pdf

Price of a typical home declined by 0.1% between March and April, but was 0.9% higher than April 2012

The typical UK home is now worth £165,586

Commenting on the figures, Robert Gardner,
Nationwide's Chief Economist, said:
“House prices were little changed in April, declining by 0.1% compared to March after taking account of usual seasonal effects. Nevertheless, there is some evidence that activity and prices have gained some momentum in recent months.

“The three month on three month measure of house prices, which is a smoother measure of the underlying trend, has been in positive territory since October last year. The annual rate of house price growth also remained in positive territory, with prices 0.9% higher than April 2012.

“Similarly, the number of mortgage approvals has edged up from the levels prevailing last year and there are reasons for optimism that activity levels will continue to strengthen in the months ahead.

Tentative signs of a pickup in activity, especially amongst first time buyers
Mortgage approvals for house purchases averaged just over 53,000 per month in the first quarter of 2013, up from an average of 51,000 per month in 2012. House purchase lending was also up 4% year-on-year in the first two months of the year, boosted by higher levels of lending to first time buyers (which was up 18% at £2bn).

Indeed, first time buyers accounted for 43% of house purchase loans in February, the highest proportion since the series began in April 2005 (excluding March 2012 which was artificially inflated due to the ending of the stamp duty holiday).

Policy measures focused on increasing the availability and lowering the cost of credit, should continue to provide support. Indeed, the Bank of England’s Funding for Lending Scheme (FLS) has already helped to drive mortgage rates down towards new all time lows (as shown below) and has recently been extended to run for another year (to January 2015).

There are tentative signs that wider economic conditions are starting to improve, with the economy returning to growth in the first three months of 2013. Nevertheless, progress is likely to be gradual. Labour market conditions remain challenging, with the unemployment rate still elevated and wage growth failing to keep up with the rising cost of living.

[Deleted User]

an extra 2000 buyers a month for 3 months is a drop in the ocean,and one has to suspect lending increased as higher ltv mortgages became avaliable

TheFactory

The value of my house climbed £1500 in April on Zoopla, first time in the 5 years thats its been in free fall!