House prices climb £7,000 in 12 months as mortgage rates fall

House prices increase for eight consecutive months up to January

Sales up 8% as mortgage availability improves and bank funding conditions loosen

“January’s figures are better than expected. Values have climbed £7,000 in just twelve months. Sales are up 8%. And prices have increased for eight consecutive months. All of this bodes well for 2013. It’s particularly encouraging given the state of the economy.

Market conditions are certainly improving. Funding is cheaper, thanks to a combination of the Funding for Lending Scheme and an improvement in investor confidence. And mortgage lenders have started competing for more business from high LTV borrowers, which is driving down mortgage rates to record lows.