Richard Sexton, business development director of e.surv comments:
“The property market bounced back this summer, with consecutive months of price rises following falls between April and June.
"While some regions have seen prices fall, the rate of fall has shrunk. The housing market across the country is moving in the right direction. Prices in London rose most, thanks to all the cash buyers pushing up demand.
"In London, there are more buyers with large deposits and they are less exposed to the squeeze on mortgages that is hitting first time buyers so hard.
“Transactions also rose 1.5% which completely defies the classic summer slowdown. Transactions usually fall about 1.5% between July and August. 2011 looks significantly better than usual.
"People who already own property are driving these sales. Mortgage finance is very cheap at the moment – it’s just hard to get if you don’t have a hefty deposit.
"With major lenders like Santander cutting their mortgage rates by 1pc this week, buyers who are able to put up at least a quarter of the value of their purchase can pick up bargains.
"The fact that the properties are so reasonably priced is also helping allay lenders’ fears about borrowers’ ability to pay for their loans.
“But first timers with less money can’t get a mortgage easily and that’s obviously a major hurdle to getting a foot on the property ladder. The ratio of flat to detached house sales has changed radically.
"The number of flats sold has fallen almost twice as far from 2007 as detached homes.
"While the large number of newly built flats that came onto the market in 2007 boosted transactions, this is largely the result of the slowing of the market for first-time buyers in the last four years and the limited availability of mortgage finance at higher LTVs.
"The UK housing market is now not only fragmented by region, but also by property type, with owners of larger detached property holding much more equity since the credit crisis than those of more modest homes.”
Dr Peter Williams, housing market specialist and Chairman of Acadametrics, comments:
“The average price of a home in England & Wales increased by a marginal 0.3% during August and now stands at £219,078.
"London prices moved ahead more sharply on the month rising 1.6% after three months of fall and, in each of the other nine regions, prices showed small positive movements, if only in slowing monthly falls.
"Hence, the headline monthly national rise of 0.3% masks a range of price movements, both up and down, in individual regions and localities.
“This is the second month of marginal increase in the national average price on a monthly basis. This average at £219,078 is some £18,844, or 9.4%, above the price observed at the trough of the last housing recession in April 2009.
"However, it is also still £12,751, or 5.5%, below the house price peak of £231,828 recorded in February 2008.
“Despite the monthly increase, prices on an annual basis have now fallen for the fourth month in row, dropping -2.2% in August.
"Greater London is the only region in England & Wales where prices on an annual basis remain positive and, given the relatively strong August rise on a monthly basis, it is possible that London prices as a whole have largely stopped falling and that a recovery phase is underway.
“Housing transactions may be steadying at around half previous peaks. All house price indices have trended down on an annual basis since September 2010 and are still in negative territory.
"There are clearly a number of areas where the market is performing more strongly and the question is whether these will translate into a stronger performance across the market as a whole.
“There are a number of modest positives that might assist that process. One positive is that the easing of house prices has aided affordability.
"A recent Halifax study suggests that affordability has hit a new 12 year high with typical mortgage payments for a new borrower standing at 28% of average disposable earnings in the second quarter of 2011; down from 48% in the third quarter of 2007.
"With increasing confidence that interest rates will remain lower for longer, indicated by the fact that fixed rate mortgages have been falling in price, it is clear that opportunities are emerging for buyers, and the second positive is that mortgage lending supply does show signs of sustained improvement from a very low base.
"Oxford Economics in a report for the National Housing Federation (July 2011) shows how credit supply and standards have improved in recent months. Thus, although confidence may remain low with limited access to mortgages for some potential borrowers, opportunities for others may well improve in due course.
“Investors have returned to the market quite strongly in recent months reflecting in part the above increase in credit supply; the question now is whether owner-occupiers will do the same?
"We would not suggest anything other than a slow recovery and it is quite clear that lenders will remain cautious, not least whilst debates continue as to the capital which they must hold and is available for their access.
"However, we are seeing an increase in the number of 95% LTV loan products on offer and one that is deposit-free announced this week. The 95% plus LTV loan is the long term benchmark product for the first time buyer and its disappearance triggered the contraction of that market.
"If the regional recovery, upon which we touched earlier, continues there is a possibility of more momentum coming back into the market.
"Much now turns on the overall state o
