Brian Murphy, Head of Lending at Mortgage Advice Bureau (MAB), comments:
“Strong house price growth is no longer a trend restricted to the South, with average prices across the country up by almost 10% since April 2013. In comparison to London, many regions have been dragging their feet in terms of housing recovery, so consumers in these areas will undoubtedly benefit from a sizeable boost to their housing equity.
“While London’s house price growth has soared over the past year, recent data indicates that the capital’s housing market is starting to come off the boil, with prices growing at a much slower rate and even falling in some boroughs. As the year progresses and the changes implemented by the Mortgage Market Review (MMR) have time to bed in, we may well see a more relaxed pace of growth take hold.
“The full impact of MMR is still yet to be seen, so knee-jerk decisions by the government to restrict house prices could well shoot recovery in the foot. The focus instead should lie on building new houses, as a chronic shortage of supply will seriously restrict consumers’ ability to fulfil their homeowning ambitions if not addressed soon.”