Brian Murphy, head of lending at Mortgage Advice Bureau (MAB), comments on the latest Land Registry House Price Index for June 2013:
“House prices climbed higher still in June, rising 0.6% from May as Help to Buy 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.
“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.”