Brian Murphy, Head of Lending at Mortgage Advice Bureau (MAB), comments:
“After a busy start to the summer in July, housing transaction activity has since fallen back slightly. This seasonal change is common, and transactions are still 5% higher year-on-year: an encouraging sign that the market is continuing to recover.
“Demand from potential buyers is holding strong, especially as many are moving quickly to secure a competitive mortgage rate before interest rates rise. Borrowers are also benefitting from attractive deals offered by lenders keen to meet their targets by the end of the year. Although house prices have continued to rise, they are doing so at a much steadier pace compared to 2014, helping to improve affordability.
“It is certainly promising to see housing activity above the levels seen 12 months ago, but there is increasing pressure on levels of housebuilding as demand continues to outweigh supply. The reality is there are still not enough homes to cater for the strong housing demand across the UK, and transactions are likely to suffer if supply doesn’t soon improve. New government schemes to improve affordable housing must be in addition to better overall housebuilding levels if they are to make any real impact.”