The Nationwide House Price survey showed an increase in house price in June of 0.9%. This follows an increase of 1.3% in May and now brings the house price reduction to 9.3% for the past year.

It is the first time since December 2007 that the 3 month change figure has been positive.

Although house prices have fallen nearly 10% in the last year this is the first time in 3 years that the annual rate of decline has been in single figures for almost a year.

All this is very welcome news. However restricted mortgage lending, fear of unemployment and the weak economy will prevent any significant improvement in the property market.

Until lenders become more willing to lend to those with less than a 25% deposit I cannot see how the market can have any sustained recovery.  Until first time buyers can get onto the property ladder the whole house buying process is at stalemate.

This entry was posted on Wednesday, July 1st, 2009 at 10:27 am and is filed under property market general, property prices. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.