According to the Royal Institution of Chartered
Surveyors (RICS), the slowdown of
house price inflation is becoming more significant. The RICS last survey of
England and
Wales indicates that house prices have fallen at their fastest pace since July 2005, and for the third month in a row.
Unsuprisingly, it seems
London was the only city for house prices to remain fairly constant. In fact,
Scotland and
Northern Ireland are both seeing sharp house price increases, the RICS reported.
In addition, with the backlash of the
Northern Rock and
US sub prime markets,
first time buyers are now finding it even harder to get onto the
property ladder. This has been supported by a slowdown of the number of first time buyers seeking
mortgage approvals, according to the Council for Mortgage Lenders.
The Council for
Mortgage Lenders stated that typical first time buyers spend just under 21% of income on
mortgage interest payments. This is the highest level since 1991. The Bank of England Base Rate which remained constant this month at 5.75%, will have disappointed many first time borrowers, who would have found it easier to meet
mortgage payments should it have decreased.
