House prices rise unexpectedly
House prices in August bucked the usual seasonal trend to bounce back by 2.5%.
The increase is thought to be down to a resurgence following dented activity earlier in the year.
Richard Sexton, director of e.surv chartered surveyors, said: “The housing market demonstrated its resilience in August, as both house prices and sales activity rose, highlighting the underlying demand from buyers.”
He added that the reality was gaining a big enough mortgage remains a hurdle for thousands of first-time buyers, despite the government’s NewBuy scheme.
The driver for the increase is thought to be down to cash buyers and the equity rich that are providing the impetus for short-term improvements in the market.
Mr Sexton added: “In light of the difficult economic backdrop, it’s encouraging to see the government place the housing sector in the limelight, extending its shared equity scheme First Buy and supporting new house building.
“However, to reignite the recovery in the national housing market, these measures need to be supported by a concerted effort from lenders to help unlock the lower tiers, supplying appropriate credit to those first-time buyers who need it most.”