Homebuying faster than building
16 May 2014 1:32am
PRESSURE mounted further on Britain’s strained housing market yesterday as a raft of new data showed home purchases soaring at a far higher pace than house building.
Mortgage lending jumped by 17.4 per cent in the year to March, according to the Council of Mortgage Lenders (CML).
The rise means 50,500 mortgages were advanced in the month, though the pace of the increase has slowed from recent highs of 30 per cent on the year.
While home buying is taking off, growth in construction remains far slower. The number of completed houses came in at 112,630 in the 12 months to March, up just four per cent on the previous year.
“Limited supply of houses is a factor pushing up prices in an increasing number of areas,” said economist Howard Archer from IHS Global Insight. “We expect house prices to increase around eight to nine per cent in 2014.”
However, there are some signs this could increase – work began on 133,650 homes in the first quarter of the year, up 31 per cent on the year.
Meanwhile rents continued to rise at below the pace of inflation.
The average monthly payment increased by 0.6 per cent – a £5 rise on the year to £741 in April, according to LSL Property Services.
Rents have risen by 12.9 per cent since the start of 2010, below the 14.5 per cent increase in prices over the same period.
In other news
This year's Eurovision Song Contest will feature an addition to the normal line up – for the first time ever, [Read more]
Tonight is the 60th Eurovision Song Contest, and once again we're in for an evening of cheesy music and crazy [Read more]
The Eurovision Song Contest is getting more and more expensive, despite Europe's decline into austerity. [Read more]
There were delays of up to 30 minutes to trains in and out of Kings Cross Station, after the station was re-opened [Read more]
When a 20-year-old footballer publicly declares he wants to leave a club and his agent hurls insults at one of [Read more]
The outbreak of bird flu in the US is leading to an unprecedented situation for companies reliant on eggs – [Read more]
Germany's finance ministry has denied reports it was considering offering Greece its own parallel currency. [Read more]
Chancellor George Osborne was given a boost today, as higher tax receipts helped shrink the deficit by more than [Read more]
Beleaguered spread-betting firm Plus500 today suspended trading in its shares on London's junior market, following [Read more]
The news that card and electronic transactions have overtaken cash as the UK’s preferred method of payment is [Read more]
Despite the crippling effect of election uncertainty, offers received in April were up 15 per cent on last year [Read more]
Former secretary of state for communities and local government Eric Pickles is to be knighted, 10 Downing Street [Read more]
Network Rail engineers have destroyed the Abbey Wood station as part of the Crossrail development that is expected [Read more]
The Championship looks set to once again be named the fourth most-watched league in Europe, following a seven [Read more]
The Costa Coffee owner said Brittain was "the standout candidate from a very strong field". [Read more]
Sugary foods may be taxed to cover the costs of treating obesity, a government minister has said.
European governments must increase efforts to adopt structural reform if “lasting stability and prosperity” [Read more]