Peter Rollings commenting in response to Nationwide's house price index
Tue 31 Jul 2012
National house prices are mirroring the plight of the economy, and it is only a shortage of properties available that is preventing larger falls in many parts of the country. Mortgage lending figures are still heading south, and lenders conservatism is being felt most keenly by first-time buyers. This is keeping the lower tiers of the housing market sedated, removing the bottom-up impetus needed to drive a recovery in prices outside of London.Its not yet clear whether the funding for lending scheme will serve as a much needed shot of adrenaline for the housing market. The prospect of the scheme has already triggered a wave of incredibly cheap rates for the equity rich, and those with substantial deposits are reaping the benefit. If we see these cheaper rates applied to higher loan to value mortgages following the schemes launch, we could see a bounce in first-time buyer figures, buoying sales activity in the second half of the year.