Home sales increase by 40%
Home sales in the UK were dramatically up on the previous months to March as 60,000 property sales went through. The number of homes sold in February was just over 43,000. Taking in to consideration seasonal trends the rise was still a healthy 13%. Mortgage approvals were also on the increase during February which was seen as a welcome relief to mortgage brokers and borrowers looking for a mortgage.
Although this was a welcome piece of good news for the housing market, it does not mean there is a significant improvement just yet. Property prices are still fairly low with the average home owner losing roughly 20% of their property’s value since 2007.
The Council of Mortgage Lenders have reported that there are around two million home owners will find themselves in negative equity, this is particularly true for borrowers who have bought in the past 2 years on a high loan to value mortgage product.
The Bank of England, in their latest review of bank lending, has said that the position is likely to remain volatile whilst mortgage lending is so difficult to secure and people face the increasing threat of loss of employment.
| 
