The June data from the Land Registry's House Price Index shows an annual price increase of 0.8% and also reveals that repossession volumes decreased by 26% in April 2013 to 1,185 compared with 1,599 in April 2012.
The region in England and Wales which experienced the greatest increase in its average property value over the last 12 months is London with a movement of 6.9%. London also experienced the greatest monthly rise with a movement of 3.1%.
The region with the greatest annual price fall is the North East with a decrease of 3.8% and it also saw the most significant monthly price fall with a decrease of 2.2%.
The most up to date figures available show that during April 2013, the number of completed house sales in England and Wales increased by 12% to 48,367 compared with 43,252 in April 2012.
The number of properties sold in England and Wales for over £1 million in April 2013 increased by 45% to 703 from 484 in April 2012.
The West Midlands was the only region to see an increase in repossession sales, up 8% between April 2012 and April 2013. The region with the greatest fall in the number of repossession sales was London where repossessions dropped by 37% in April 2013 compared with April 2012.
The figures are very positive for the mortgage market, according to Paul Hunt, managing director of Phoebus Software, describing the market as taking some ‘small but significant steps’ on the road to recovery.
‘It is encouraging to see property sales are up, with more first time buyers entering the market thanks to the government’s initiatives such as the Help to Buy scheme and the Funding for Lending Scheme, that have boosted confidence. The FLS has added slabs of muscle to the strength of lenders’ balance sheets,’ he said.
‘Funding conditions have improved rapidly as reflected by the falling rates and higher numbers of mortgage approvals recently. Lenders have proved to be proactive in their efforts to support a wider range of borrowers. The mortgage market is in the best shape it has been in for some time. Although the level of lending is still far from ideal, the market’s underlying buoyancy is still helping to drive up house prices up again from last month,’ he added.
David Newnes, director of LSL Property Services and owners of Your Move and Reeds Rains said the figures show that momentum is growing in the housing market. 'The first time buyer market is showing it is ready to bounce back after a tough past couple of years, and the market is no longer dominated by equity rich buyers. Improved confidence, both among lenders and buyers, and a limited supply of properties is driving up values, plus the new government schemes have given the whole market a boost,' he pointed out.
'The availability of cheaper mortgages has improved significantly in the last few months allowing banks to access cheaper credit and enabling them to loosen the purse strings on higher LTV mortgages. Even though first time buyer activity is lagging far behind its pre 2008 levels, there are good signs that progress is being made. The first time buyer market is thawing, and that will energise the whole property chain, which will keep house prices moving steadily up as long as house building remains low. We expect more lower income buyers to flock to the market and this will help stimulate growth across the board,' he added.
According to Brian Murphy, head of lending at the Mortgage Advice Bureau (MAB), Help to Buy has continued to heat up the housing market. 'Increased buyer interest has also reignited competition between lenders. Product numbers rose to nearly 10,000 in June to their highest since November 2011, while fixed rate deals have been in freefall for almost a year,' he said.
'This week’s discussions over the second part of Help to Buy has attracted even more interest in the initiative, and less affluent buyers will be relieved that second homes won’t qualify for government help. A crucial challenge for the Treasury will be to cement the finer details of the mortgage guarantee to encourage the majority of lenders to participate and improve product pricing,' he added.
