House values have increased by an average of £7,000 in the last year whilst overall sales are also up 8%.
According to the latest report from LSL Property Services Ltd. January’s figures are better than expected.
David Brown, commercial director of LSL Property Services, said: “Market conditions are certainly improving.
“Funding is cheaper, thanks to a combination of the Funding for Lending Scheme and an improvement in investor confidence.
“And mortgage lenders have started competing for more business from high LTV borrowers, which is driving down mortgage rates to record lows.
“Lending criteria are becoming less restrictive, so borrowers no longer have to cross such a painfully high financial threshold in order to get a mortgage. That’s a source for optimism, as is rising employment and a mini-revival in the first-time buyer market.
“These are rays of light which will help brighten the housing market in 2013.”
Whilst optimistic Mr Brown pointed out that the London market creates a huge distortion and in reality growth outside the capital is extremely modest.
