By TraderVox.com
Tradervox.com (Dublin) – According to a report released today by Accadametrics Ltd and LSL Property Services Plc, the UK house prices fell in September as mortgage availability remained limited and the calmness experienced during the London Olympics in August continued to reduce the home sales. The report indicated that the average price for a home in England and Wales dropped by 0.1 percent to $362,000 as transactions fell by 24 percent to 50k. Making it the second-lowest level since the records began in 1995.
According to a statement from David Brown, the Commercial Director at LSL, the slow mortgage market and the knock-on effect of reduced buyer activity in August has resulted to the poor housing data. The statement continued to note that the lack of lending to first time buyers reduced sales outside the prime London. According to Bank of England report released last month, secured credit to households rose in the three months through to September after the BOE started a program in August aimed at boosting bank lending to households. The report forecasted that the bank lending to households will increase hence improving mortgage availability which will boost house prices as well as sales.
In the statement, Brown indicated that the program will improve the availability of cheap finance to those waiting to purchase first home. This will lead to improved transactions. The report also showed that the house prices rose from a year earlier by 2.2 percent in September. It also noted that the values of houses rose on an annual basis in the last six months as properties were in short supply. Giving data for the London area, the report showed that the average prices rose on an annual basis by 8.2 percent; this is more than three times more than any other region in the country. This trend was instigated by the 23 percent surge in Chelsea and Kensington and the 14 percent rise in Westminster.
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