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Increase in House Prices Hints at Long-Term Market Optimism

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For the first time in three years there are not only signs that the housing market in the UK is picking up, but also that the government is actively working on all the cogs that will make mortgage lending a very real possibility once more.

For Britons who’ve failed to secure finance since the global economic collapse of 2008, trying to secure finance for a mortgage has been nigh on impossible.

During that time banks and building societies have closed their lending doors to anyone other than those with unblemished credit ratings and undeniable proof that they are in a strong position to repay loans of any type, let alone mortgages.

spiral staircase

Has the downward spiral of house prices ended?
credit: dengel, SXC

That sentiment rings true for no sector more than contractors, indeed all self-employed, whose search for willing lenders has often been in vain.

However, things are seemingly turning in the right direction in the UK housing market, albeit slowly, with house sales improving in the first month of 2012, according to the Royal Institution of Chartered Surveyors.

Exactly how much of that surge came from first-time buyers taking the plunge before tax exemption on stamp duty for properties below £250,000 finished is a grey area and may well have had a strong underlying influence on the overall figure for January.

House price depreciation may well have bottomed out

But other sources in February suggest that the trend has continued, with the RICS also reporting increased house sales from Estate Agents across the country.

The rise per branch was as little as 0.3 properties, rising from 15.7 to 16, but that’s enough to show mortgage lenders that January’s increase was perhaps no one-off.

Even better news for those looking to find the best self-employed mortgage, where finding a larger deposit is often the norm, is that house prices did fall away again in February.

A slight increase of 0.7% in January, brought on by those first-time buyers looking to preempt the end of stamp duty exemption, was perhaps an exception.

The rate of property value decrease in February was considerably less than in previous months so this may well be the optimum time to strike for those considering applying for self-employed mortgages.

Given the focus the government will placing on the construction industry, first-time buyers and mortgage lending sectors in a very real drive to kick-start the UK housing market, RICS believe that, combined with other external factors, housing prices may well fall no further.

More figures and comment from the surveyors’ spokesperson Alan Collett in the next report here on

Author: John Yerou

John Yerou is the owner and founder of Self Employed Mortgages; a trading style & trade mark of the award winning Mortgage Quest Ltd. One of the most recognised names in providing mortgages for Self-Employed professionals across the UK.

In 2004 John began his career in Financial Services as an independent mortgage adviser and broker. John has been instrumental in negotiating bespoke underwriting for contractors with high street lenders.

His presence in the industry as a go-to expert is growing by the day and he is regularly cited and writes in publications both locally and nationally.

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