Residential property market in 'excellent health'

Millions priced out of UK housing market

House prices soar at three times rate of stock market

House price inflation to slow in 2007

Residential property market in 'excellent health'

A total of 126,000 mortgages were approved for house purchases in September, a two-and-a-half year high, according to official data released by the Bank of England (BOE).

BOE also reveals that total net lending on homes increased £8.9bn in September, representing an 11.2% increase on the same time last year.

David Stubbs, senior economist at the Royal Institution of Chartered Surveyors (RICS), says: "The figures show the housing market remains in excellent health, with a strong economy and investor activity fuelling strong demand for housing."

The supply of residential property coming on to the market has not however, risen in line with mortgage approvals. Stubbs adds: "Mortgage approvals may be up, but new property coming on to the market is the lowest in four years reducing supply.

Millions priced out of UK housing market

Millions of would-be residential property buyers are unable to get a foot on the property ladder due to price restraints, according to Abbey.

The report estimated that 17.3m adults in the UK were unable to get onto the property ladder for a variety of reasons. A total of 6.9m people say they are unable to buy their own home because they cannot raise the required deposit, 3.4m reveal they are waiting for house prices to fall, 2.1m people report they could not find the right mortgage, while 3m people blamed lack of job security.

Nici Audham Gardiner, mortgage product executive at Abbey, said: "There are people who feel that they do not want to get on the property ladder, but those who do face many barriers of which the most notable is the cost of homes."

House prices soar at three times rate of stock market

Residential property prices have risen by over three times the rate of stock market, over the pasty decade, according to a recent report.

The Halifax reveals that UK house prices have soared by 187% since February 1996, while stock prices rose 61% over the same period. In comparison nominal earnings rose by 54%, while retail prices were up 31%.

The highest property price increase was recorded in London, up 240%, followed by Northern Ireland, where prices rose 231% and south-west England, up 213%.

Tim Crawford, group economist at Halifax, said: "The premium for living in London has increased over the last ten years, as the average property price in the capital has more than tripled."

House price inflation to slow in 2007

Average UK house price growth will slow in 2007, according to Knight Frank Residential Research.

The report estimates that average UK property prices will appreciate by 6% during 2007, down from an estimated 9% in 2006.

Property price growth in Scotland and Northern Ireland is expected to lead the way, with prices expected to grow by 9% and 10% respectively.

Liam Bailey, Knight Frank's head of residential research, said: "The boom seen in central London in 2006, with prices rising by up to 25 percent in some micro-locations, will spread with equity-rich London and Home Counties buyers moving into prime regional markets and competing with local buyers."