House Prices UP in January - 06/02/2009

Author: Jeni Browne Posted on: 06 February 2009

The average price of UK homes rose by 1.9% in January from December's figure, according to the Halifax as reported on the BBCs wesbite yesterday (http://news.bbc.co.uk/1/hi/business/7871614.stm).  Does this mean that at last things may be on the up or at least bottoming out for house prices?

The article from the Beeb is quick to point out that just because there was a rise, this does not necessarily mean that we are saved!  However what it does mean is that we have had the first good bit of news for house prices in many months.  Indeed here at Mortgages for Business, we are seeing a growing number of clients looking to purchase , having waited many months.  It seems that the general consensus is that things have pretty much reached the bottom, and with such good bargains to be had and residential mortgage rates coming down, buyers are keen to get in now and secure a good deal rather than wait and miss out. 

This is further underpinned by another drop in base rate yesterday - the cost of borrowing is coming down, the cost of property is coming down, the Government are finding innovative ways to support first time buyers (more on the Homebuy scheme next week), so all in all, things are looking a little bit rosier all round.