Brian Murphy, Head of Lending at Mortgage Advice Bureau (MAB), comments:
“Consumers used to recent announcements about rising house prices might be surprised to learn that the Halifax House Price Index indicates average UK house prices fell in March. While this inevitably masks regional variation, it follows on from a slowing rate of house price increases in recent months, giving buyers peace of mind that growth appears to be moderating to a more sustainable and affordable rate.
“With Help to Buy now set to run until the end of the decade, first-time buyers in particular can count on government support when buying a home, putting those with small deposits back onto the property ladder. The Bank of England has also confirmed that if interest rates rise they will only do so gradually, so consumers will continue to benefit from the record-low mortgage rates that are currently available.
“However, supply continues to lag behind demand: finding the materials and skills needed to get Britain building enough is the biggest hurdle currently facing the property market. Unfortunately this is not something that can be solved overnight, but the market is in great shape to tackle this problem and continued government support will keep prices affordable.”