- David Brown, commercial director of LSL Property Services
Property prices in England and Wales hit record high in May as government's initiative to ease credit pressure made mortgages available to larger number of people. The average home price climbed 0.4% in May on a monthly basis to GBP233,0631, according to Acadametrics and LSL Property Services. Home prices surged by annualized 2.7% last month. Seven out of 10 regions monitored by Acadametrics showed an average yearly jump in real estate prices over the last quarter, led by a 10.1% increase in London. Meanwhile, Wales witnessed the biggest decline in the period, with three regions registering a drop in prices of about 1.3%.
The government has implemented measures to increase mortgage supply and offered assistance to prospective house buyers to revive housing market. Last year, officials announced a Funding for Lending plan to improve lending and grant access to cheap mortgages. So far, the data indicate that net lending remained in negative area, though many mortgage rates have declined. However, some experts criticize the government's measures as they may fuel new property bubble.
© Dukascopy Bank SA