Warm weather brought homebuyers out
Warm weather brought homebuyers out of the woodwork in May, according to Moneyextra, though they warn this is unlikely to translate to a boom in the home loans market as higher interest rates and Home Inspection Packs loom.
Following a relatively muted first four months of the year the UK housing market picked up in May as the warmer weather stimulated house hunting.
May saw a surge in mortgage activity, with the total value of home loans arranged by AWD Moneyextra growing by more than 27% on the previous month.
The average value of mortgages completed by AWD Moneyexta meanwhile grew by more than 7% to £150,556, compared with an average of £140,898 for the five months of the year to May 2006 and £126,908 for the same period in 2005.
However, many have described the housing market's performance as a spring blip rather than a general upswing as interest rates are forecast to rise and homeowners look to sell before the introduction of Hips in a years time.
Robin Amlot of Moneyextra.com said: "Any sign that a relative glut of property is coming onto the housing market, together with the outlook for higher interest rates in the near future, is likely to restrain any exuberance in the housing market."
Nevertheless, the average mortgage comparison carried on Moneyextra.com in May was £135,109, an increase of 3.79% on 2005 and up 16.8% on March 2004.
Furthermore, the average property value searched for on Moneyextra.com rose by 2.71% over the last year to £215,705 and by 9.57% on May 2004.
Warm weather brought homebuyers out of the woodwork in May, according to Moneyextra, though they warn this is unlikely to translate to a boom in the home loans market as higher interest rates and Home Inspection Packs loom.
Following a relatively muted first four months of the year the UK housing market picked up in May as the warmer weather stimulated house hunting.
May saw a surge in mortgage activity, with the total value of home loans arranged by AWD Moneyextra growing by more than 27% on the previous month.
The average value of mortgages completed by AWD Moneyexta meanwhile grew by more than 7% to £150,556, compared with an average of £140,898 for the five months of the year to May 2006 and £126,908 for the same period in 2005.
However, many have described the housing market's performance as a spring blip rather than a general upswing as interest rates are forecast to rise and homeowners look to sell before the introduction of Hips in a years time.
Robin Amlot of Moneyextra.com said: "Any sign that a relative glut of property is coming onto the housing market, together with the outlook for higher interest rates in the near future, is likely to restrain any exuberance in the housing market."
Nevertheless, the average mortgage comparison carried on Moneyextra.com in May was £135,109, an increase of 3.79% on 2005 and up 16.8% on March 2004.
Furthermore, the average property value searched for on Moneyextra.com rose by 2.71% over the last year to £215,705 and by 9.57% on May 2004.
posted by tony at 10:09 PM
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