Recovery tipped to stimulate affordability

The UK housing market will see increased affordability as the recovery gathers pace, it has been suggested.

Jon Brown from partner relations at online change of address service iammoving.com suggested that while a “perceived” shortage of supply may “slightly” increase prices, this will not last.

“Once confidence in the economy and lending returns so will developers and, in turn, more affordable housing,” he predicted.

Such a development could help those keen to find a good mortgage, as a lack of a supply bottleneck could prevent another surge in prices.

Mr Brown went on to suggest that mortgage approvals could reach 2000 levels by 2013, provided the government and banks learned from their past mistakes.

One hint that the market may be starting to recover has been revealed by recent house price figures.

Halifax data for July showed that there had been a 1.1 per cent rise that month, the third successive increase in values.

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