House prices up just £20 in May
Share
House prices increased by just £20 in May, compared to April, shows the latest LSL/Acadametrics House Price Index.
On a year-on-year basis prices have increased by just 1%.
David Brown, commercial director at LSL Property Services, says while house prices remain essentially static, property is actually becoming much more affordable.
He says: “In the last year, home values have risen by an average of £220 per month, but to keep pace with inflation, they would have had to rise by £830 per month. By the same token, in the four years since April 2007, house prices have risen less than 1%, while average wages have increased by 13.7%.”
He believes buyers have been unable to make the most of improving affordability because despite the smaller proportion of salaries property prices currently represent, buyer confidence is low and it’s still far too difficult to get a mortgage.
Brown adds: “Economic uncertainty, fears over jobs, a squeeze on incomes and nervous mortgage lenders are keeping a lid on the housing market. It’s no wonder transaction volumes remain so very low.”
If you enjoyed this article, sign up here to receive daily email updates from Mortgage Strategy and Follow @mortgagestrat
Readers' comments (4)
Anonymous | 10 Jun 2011 10:33 am
Oh no, what a terrible predicament this is for the wealthy elite who got us into this mess in the first place but have, themselves, been barely affected at all.
Unsuitable or offensive? Report this comment
Chris | 10 Jun 2011 4:42 pm
We are near the bottom of the curve in falling house prices, take advantage of this rather than moaning about it.
Unsuitable or offensive? Report this comment
Ryan | 14 Jun 2011 10:30 am
And how do you suppose we 'take advantage'?
The majority of people that want help with either remortgages or purchases dont have the equity or the savings to do anything.
House prices are still very low but cost of living has increased without peoples incomes matching it making it very hard to save.
if you have the money then its great but if you dont (like most people) its quite depressing.
Unsuitable or offensive? Report this comment
David | 14 Jun 2011 1:23 pm
"house prices have risen less than 1%, while average wages have increased by 13.7%.”
Find it hard to believe, don't know anyone that has had that much increase. I know people who have been made redundant and those who had pay cuts though.
Unsuitable or offensive? Report this comment