Figures have revealed that the UK housing market has shown some signs of improvement recently, as lending figures for August increased.
According to the Council of Mortgage Lenders, a total of 52 thousand home loans were advanced for house purchases in August – representing a rise of 7% since July.
Remortgaging also increased by 30% in August 2011 (compared to the previous year) and a total of 34, thousand loans were taken out.
Lending for first time buyers and home movers was at its highest rate for more than a year with 96% of first time buyers in August taking out a repayment mortgage. The number of first time buyers increased by 5% from August 2010 through to July 2011.
“Even though it is impossible to ignore the knocks to confidence emanating from the Euro zone, August lending showed welcome signs of life,” said Paul Smee, Director General of the Council of Mortgage Lenders.
These recent figures represent an increase after a turbulent few years in the housing market. There is still however little indication that the housing market will return to pre-recession levels.
Recent research from Halifax bank suggested that the housing market was “lacking direction” as well as a “very mixed pattern of monthly price movements.”
Martin Ellis, Housing Economist at Halifax commented; “Greater uncertainty about economic and personal financial circumstances, together with pressure on householders’ finances from weak earnings growth, higher inflation and increases in taxes, are likely to be constraining housing demand.”
With the base rate remaining at an all time low, borrowers can benefit from paying very little back in interest. Now could be a good time to take out a mortgage therefore.
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