UK Home Purchases, Prices Rebound

The number of mortgages issued for home purchases in the U.K. rebounded strongly at the end of the first quarter, although the current level remains well below the historical average, according to Financial Times.

The number of mortgages issued for home purchases in the U.K. rebounded strongly at the end of the first quarter, although the current level remains well below the historical average, according to Financial Times. On Friday, the Council of Mortgage Lenders reported that 37,800 homebuyers opened mortgages in March, which is 24% higher month-over-month but still 17% below the level recorded at the same time last year. The pattern of a monthly increase but annual decline was consistent across all categories such as first-time buyers, home movers, and those remortgaging property.

Meanwhile, Academetrics and LSL Property Services reported that home prices in the U.K. surged in April as buyers moved to avoid a sales-tax increase, according to Bloomberg. The average price of a home in England and Wales added 0.3% in April from the previous month to reach £223,352, which is 0.9% higher year-over-year. LSL director David Newnes said, “Rising prices at the top of the market have held up property prices,” and he noted, “The market remains hampered by tight mortgage lending.”

Click here to read the story on home purchases from Financial Times.

Click here for coverage of home prices from Bloomberg News.