The Bank of England released new figures Wednesday providing more evidence that fears of a house price bubble in have been overblown.
Property prices in the UK have risen sharply since hitting post-crisis lows in 2011. Over the past year alone prices have risen by 7.2% across the country, with London prices up an astonishing 18.4%. Much of this is due to deferred demand from the crisis, with many people putting off home moves while the economy was weak, and over-enthusiasm that we could be returning to the halcyon days of the pre-crisis housing market boom.
However, September saw a reversal of this trend with a modest monthly fall in prices and new data from the Bank of England suggests there may be further weakness to come.
The number of loans granted against dwellings in September fell to 101,008, down from 105,816 in August. The value of mortgage loans over that period fell from £10.3 billion to £10 billion, with remortgages falling by a similar amount.