A survey from building society Nationwide has revealed that house prices fell by 0.2% in April. The figures represent a continuing decline, with estate agents and residential property law insiders predicting that the property crisis is far from over.
With prices down 0.9% compared with a year ago, statistics from the Bank of England have also shown that a rise in mortgage lending approvals which led to a higher number of exchanges at the beginning of the year has now subsided.
It is thought that the stamp duty holiday coming to an end in March significantly contributed towards this sudden drop in mortgage lending, although there are hopes that those seeking to get a foot on the property ladder will be supported to some extent by the introduction of the government’ NewBuy scheme.
The news comes days after the Halifax, Co-operative Bank and several other lenders announced that they were increasing the rate at which borrowers would have to pay interest on their mortgages. It is thought that over a million homeowners have been affected by the rise.
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