Mortgage market ‘confidence is returning’

Confidence in the mortgage market is likely to continue to increase over the next couple of months, one expert has suggested.

Peter O’Donovan, head of mortgages at Bestinvest, stated that while a recovery might not happen overnight, it seems prospective buyers and sellers are becoming more positive.

In July, Nationwide reported that the average house price rose to £158,871, an increase of 1.3 per cent.

It also showed that property values went up by 2.6 per cent in the three months to July.

Commenting on the statistics, he said: “All in all it gives us good room for a bit more confidence that house prices may well have started to bottom out at this level.”

According to Mr O’Donovan, National Housing Federation predictions that the market will decline further next year and only start to improve in 2011 are pessimistic.

He noted that the higher number of property purchases combined with a lack of available housing could mean more individuals decide to enter the market.

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