Housing market: Mortagages and prices slump, while average FTB deposit tops

15th March 2011

The Guardian reported that average home was priced at £208,552. 1.4% than the month previously according to the Department of Communities and Local Government (DCLG).

The rate at which house prices grew on an annual basis rose 0.5% in January, compared to 3.8% in December and 10.6% in May 2010.

The Financial Services Authority also released data which showed that the number of new mortgages sold fell 10% to £37bn in the fourth quarter of 2010.

The total number of accounts in arrears at the end of 2010 was 343,400, unchanged from last quarter.

Elsewhere The Telegraph reported that first time buyers now needed a deposit of over £31,000 to buy a home in the second half of 2007.

The typical deposit stood at £12,700 at the start of 2007, but rose to £31,500 by the second half of 2010, the Council of Mortgage Lenders has said.

The CML also warned that next month things would get worse as buyers of the most expensive properties faced a 5% rate of stamp duty.

The CML said few people would be affected, but that the hike illustrated an increasingly haphazard and arbitrary approach to taxation on home-ownership.

It said: "We argue that the forthcoming Budget presents a chance for the government to unveil a more coherent and credible policy approach to home-ownership.

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