Thursday, 4 July 2013

Martin lists the 3 important factors ....

"Improved confidence in both the housing market and the economy, [1] combined with a shortage of properties available for sale, appear to be pushing up house prices,"  said Martin Ellis, Halifax's chief economist.

[2] The Halifax said the government's Funding for Lending Scheme (FLS) appeared to be boosting the market by helping to reduce mortgage rates.

Under FLS, banks and building societies are able to borrow money cheaply from the Bank of England, as long as they lend it out to individuals and businesses.

[3] Mr Ellis added: "There are also early indications that the Help to Buy equity loan scheme may be stimulating demand."

The Help to Buy scheme launched in April 2013, and allows borrowers to take an equity loan from the government worth up to 20% of the price of a new house.   That, in turn, enables homebuyers to put down a smaller deposit.

0 comments: