Housing Market "being Propped Up" by BTL and Rich
Property prices in England and Wales dipped by 0.3% between March and April to stand at 160,417 - 1% lower than last year, according to the Land Registry.
However, the price dip would have been steeper had it not been for an annual rise in London house prices of 5.1%. In Hammersmith and Fulham, between March and April, house prices bounced by 3%, and in Kensington and Chelsea they shot up 3.6%.
The average price of a property in the capital is now 360,721. By contrast, house prices fell in most regions, with a monthly fall of 2.7% in the West Midlands and 2.4% in Yorkshire & the Humber.
The Land Registry also reported a rise in property transactions, although its data is very historic. The latest statistics show an average of 52,350 sales per month between November and February, up from 47,624 for the same period the year before.
Meanwhile, property website Primelocation reported that top-priced property is more expensive than ever: the average €prime property' asking price in the UK is now 478,797, while in London it is 1,307,801. The site defines €prime' as being in the top 25% of UK property by value.
Analysts were not impressed by the Land Registry statistics, blaming a lack of mortgages.
Richard Sexton, director of e.surv chartered surveyors, said: €The housing market is being propped up like a Friday night drunk by landlords and wealthier buyers.
€House prices are tied to events across the Channel, and the market is feeling the full force of the political chaos that is paralysing the eurozone. The crisis is stemming the flow of mortgages, which is stifling first-time buyer activity and dragging down prices. Fear in the investor markets over the future of the euro has pushed banks' funding costs up by 40% since February.
€The major banks have responded by bumping up mortgage rates, and reducing lending to first-time buyers to protect their balance sheets.
€A recovery in mortgage lending looks a long way off. Banks will continue to rein in the amount they lend to low income buyers over the next few months, and will be forced to raise rates further if the crisis worsens.
€They are terrified by the prospect of a messy Greek exit from the euro and Germany's brinksmanship tactics in dealing with the debt crisis. Until the turmoil in Europe quietens down, mortgage lending will be subdued and prices will remain suppressed.
€The key that will unlock the door to consistent house price growth is more mortgages to borrowers with small deposits. But that won't happen while the euro zone is in such a sorry state.€
Meanwhile, there are indications that a slowdown has extended into this month. Agency Express, the boards supplier to estate agents, said that the number of For Sale signs converting to Sold this month slipped 7.2% compared with April.
New For Sale listings also fell, by 5.5% on April.
James Bawa, chief executive of Teachers Building Society, has been elected to the council of the Building Societies Association.
Representing mutual lenders and deposit takers in the UK including all 47 building societies, the BSA council manages the business of the trade association.
Bawa represents all of the building societies in the metropolitan region on the council, which covers the whole of the South and East of England.
However, the price dip would have been steeper had it not been for an annual rise in London house prices of 5.1%. In Hammersmith and Fulham, between March and April, house prices bounced by 3%, and in Kensington and Chelsea they shot up 3.6%.
The average price of a property in the capital is now 360,721. By contrast, house prices fell in most regions, with a monthly fall of 2.7% in the West Midlands and 2.4% in Yorkshire & the Humber.
The Land Registry also reported a rise in property transactions, although its data is very historic. The latest statistics show an average of 52,350 sales per month between November and February, up from 47,624 for the same period the year before.
Meanwhile, property website Primelocation reported that top-priced property is more expensive than ever: the average €prime property' asking price in the UK is now 478,797, while in London it is 1,307,801. The site defines €prime' as being in the top 25% of UK property by value.
Analysts were not impressed by the Land Registry statistics, blaming a lack of mortgages.
Richard Sexton, director of e.surv chartered surveyors, said: €The housing market is being propped up like a Friday night drunk by landlords and wealthier buyers.
€House prices are tied to events across the Channel, and the market is feeling the full force of the political chaos that is paralysing the eurozone. The crisis is stemming the flow of mortgages, which is stifling first-time buyer activity and dragging down prices. Fear in the investor markets over the future of the euro has pushed banks' funding costs up by 40% since February.
€The major banks have responded by bumping up mortgage rates, and reducing lending to first-time buyers to protect their balance sheets.
€A recovery in mortgage lending looks a long way off. Banks will continue to rein in the amount they lend to low income buyers over the next few months, and will be forced to raise rates further if the crisis worsens.
€They are terrified by the prospect of a messy Greek exit from the euro and Germany's brinksmanship tactics in dealing with the debt crisis. Until the turmoil in Europe quietens down, mortgage lending will be subdued and prices will remain suppressed.
€The key that will unlock the door to consistent house price growth is more mortgages to borrowers with small deposits. But that won't happen while the euro zone is in such a sorry state.€
Meanwhile, there are indications that a slowdown has extended into this month. Agency Express, the boards supplier to estate agents, said that the number of For Sale signs converting to Sold this month slipped 7.2% compared with April.
New For Sale listings also fell, by 5.5% on April.
James Bawa, chief executive of Teachers Building Society, has been elected to the council of the Building Societies Association.
Representing mutual lenders and deposit takers in the UK including all 47 building societies, the BSA council manages the business of the trade association.
Bawa represents all of the building societies in the metropolitan region on the council, which covers the whole of the South and East of England.
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