Brian Murphy, Head of Lending at Mortgage Advice Bureau (MAB), comments:
“It’s welcome news that house price growth is slowing after some dizzying rises in recent months. These have undoubtedly been fuelled by the surge in the London property market. Putting the capital and South East to one side leaves us with a far more measured and controlled upwards trend. Annual growth of 4.7% will be welcome news to those who not so long ago were caught in an equity trap and the victims of a stagnant market.
“There are signs that the upwards momentum in the housing market is cooling slightly. As for the mortgage market, with the new affordability rules keeping lenders under a tight rein, decisions to offer credit are being taken with clear heads and a full and honest appraisal of borrowers’ finances.
“Public comments from the Governor of the Bank of England and the Prime Minister in the last 48 hours have made two vital points: firstly, that we need more homes to keep up with the demands of our growing population; and secondly, that Help to Buy is making a difference to aspiring homeowners across the country with very little role behind the flurry of activity in London and the South East.”