Brian Murphy, Head of Lending at Mortgage Advice Bureau (MAB), comments:
“In October 2014, the residential market cooled slightly following a busy summer – but this year the market shows little sign of slowing down. October was the fifth successive month in which there were more than 100,000 residential property transactions, and it is good to see that strong market activity is continuing into the winter months.
“Demand from potential buyers remains high, with many taking advantage of the excellently priced mortgage rates available on the market. Affordability has also benefited from an improving economic outlook, with low inflation and rising wages helping to offset house price rises, which have been more moderate compared to last year. The outlook is certainly positive for those who meet lenders’ criteria.
“While it is always good to see healthy levels of demand, more needs to be done to address the fact that there are not enough homes to cater for would-be buyers’ needs. Policymakers need to work hard to ensure that housebuilding output is sustainably boosted, or transaction levels will ultimately suffer. New government schemes to improve affordable housing must be in addition to better overall housebuilding levels if they are to make any real impact.”