Brian Murphy, Head of Lending at Mortgage Advice Bureau (MAB), comments:
“Strong rates of house price growth are not just limited to the South, with the North East experiencing the largest post-election surge in June. Even so, there is still a clear North/South divide with annual growth of 7 percent+ in London, the South East and East likely to give many aspiring homebuyers a sense of vertigo.
“The National Association of Estate Agents’ suggestion that housing demand still outstrips supply by ten to one* is likely to support robust increases for the foreseeable future. The mortgage price war has helped by making loan rates more affordable over the last twelve months1, but with the Bank of England edging closer to a base rate rise, it is unlikely that such consumer-friendly rates will be a feature of the market for too much longer.
“Borrowers have got used to interest rates and house prices travelling in opposite directions for years and some may have been biding their time to see how low rates will go. Now a base rate rise is on the horizon, would-be buyers and remortgagers should act fast if they want to get the best deals.”