HOUSE PRICES RISING AT FASTEST RATE FOR YEARS - RICS July 2013 UK Residential Market Survey

The UK housing market appears to have finally turned a corner as buyers returned to the market in their biggest numbers for years, says the latest RICS Residential Market Survey (13 August 2013). During July, the amount of potential buyers looking to enter the market grew at the fastest rate since July 2009, as a net balance of 53% more chartered surveyors reported increases in demand. Since the start of the year, buyers have gradually been returning to test the market – thanks in no small part to government finance initiatives – yet the amount of would-be buyers seen in July saw a sizeable peak. Significantly, this growth was seen in each and every part of the UK as the recovery, initially focused in the South East, spread to regions across the country. The West Midlands and the North East – areas which have suffered more than most since the market crash – experienced the biggest increases in buyer activity in July. Consequentially, prices rose in the country for the fourth consecutive month and grew at their fastest rate since the market peak of November 2006. Notably, this was not only confined to more affluent parts of the country such as London, but every region saw growth as we enter the end of the summer period. In tandem with rising buyer confidence, more potential sellers looked to test the market and place their homes up for sale. Last month, 15% more respondents reported rises rather than falls in new instructions. This reading has now been in positive territory for the last six months. However, in each of these months it has been outstripped by the change in new buyer enquiries. Looking ahead, it seems that prices across the country are going to continue to rise further, with a net balance of 35% more surveyors predicting increases. Meanwhile, transaction levels are also expected to grow, as 53% more respondents forecast sales will rise rather than fall over the coming three months. Peter Bolton King, RICS Global Residential Director, said: “These results are great news for the property market as it looks like at long last a recovery could be around the corner. Growth in buyer numbers and prices have been happening in some parts of the country since the beginning of the year but this is the first time that everywhere has experienced some improvement. It is clearly good news that those parts of the property market that were struggling are at last showing some signs of life.” Endorsing this view, Adam Offer, managing director of leading south west estate agents, Besley Hill, said: “Feedback from our offices throughout Bristol and Gloucestershire shows that house prices are rising in our area and I am confident that this trend will continue in the coming months.”

4,000 NEW HOMES ALREADY SECURED WITH HELP TO BUY

Nigel Bull, one of a team of Mortgage Advice Bureau (MAB) financial advisers serving Besley Hill Estate Agents offices throughout Bristol and Gloucestershire, comments on the success of the Help to Buy Scheme and the outcome of the recent MPC meeting: “The June meeting of the Bank of England’s Monetary Policy Committee (MPC) marks the last time that the current Governor of the Bank of England, Mervyn King, will preside over the interest rate setting and monetary stimulus monthly meeting. The Governor is stepping down from the role at a time when the economic news finally looks to be moving more consistently in a positive direction. Several economic surveys in the last week or so have reported business expansion in the service sector, which accounts for some three quarters of the UK’s total trade, and importantly, due to the need for us to diversify our economy, expansion is also occurring in both the construction and manufacturing sectors. We understand that at the previous meeting of the MPC in May, King voted in favour of an injection of 25bn to stimulate the economy, however, the group vote was to take no action. This notion was upheld once again at this month’s meeting as the committee voted to maintain the base rate of interest at 0.5% and to refrain from further asset purchase. With the global economy now appearing to finally be heading in the right direction, we could see this attitude becoming a world-wide trend, with many central banks looking to refrain from further market intervention. The Government’s interventions to stimulate the housing and mortgage markets announced in the recent budget included the Help to Buy scheme, which has been operating for a little over two months. During that time 4,000 new homes have been reserved. This initial take-up is very positive and there are further measures due to come into operation in 2014 with the introduction of a mortgage guarantee scheme to enable lenders to offer mortgages at higher Loan to values on re-sale property. This is likely to give a further boost to housing transaction numbers and greater access to mortgage finance for those borrowers who have not been able to save substantial deposits or those whose equity has been eroded. Mortgage rates have continued to fall at the beginning of June from May with the average 2, 3 and 5 year fixed rates now at 3.74%, 4.06% and 3.88% respectively. Borrowers across the country remain firmly in favour of fixed rates with more than nine out of every ten borrowers during May and cumulatively opting for a fixed mortgage product. May has also seen a positive increase in the number of mortgage products offered to the market with more than 7,000 mortgage products currently available to the typical intermediary, almost a 6% increase over April and the highest number in more than 12 months.” To find out how you could take advantage of the Help to Buy scheme, call Nigel Bull on 0117 9325686, email him at nigelb@mab.org.uk or contact the MAB local mortgage specialist at your nearest Besley Hill office. Note: Your home may be repossessed if you do not keep up repayments on your mortgage. There will be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.

CHEAPER BORROWING SET TO CONTINUE?

Nigel Bull, one of a team of Mortgage Advice Bureau (MAB) financial advisers serving Besley Hill Estate Agents offices throughout Bristol and Gloucestershire, comments on the Bank of England’s Monetary Policy Committee’s decision to retain the base rate of interest at 0.5% for the 50th month. “Last month we were waiting the first quarter Gross Domestic Product (GDP) results for the UK economy and the outcome was positive with, as expected, the UK posting a 0.3% rise in GDP following the fourth quarter 2012 decline. This meant that the UK had officially avoided what was potentially a “triple dip recession”. Following the publication of the positive GDP data, we are not surprised that at this month’s meeting of the Bank of England’s Monetary Policy Committee (MPC), the vote was once again to refrain from further monetary stimulus keeping it unchanged at £375bn. It also decided to maintain the base rate of interest at 0.5% this month and this marks the 50th month that the Bank Rate has remained at this all time low level. The Bank of England has recently announced the appointment of a new Bank Governor, Mark Carney, former Governor of the Bank of Canada, an economy that fared far better than many other Western economies following the global financial meltdown. Mr Carney is said to favour other forms of central bank intervention, so it will be interesting to see if Quantitative Easing (QE), the current Governor’s preferred method of direct intervention, will stay, or if we will see a new policy direction. Following the recent budget announcements in relation to the Government’s Funding for Lending scheme (FLS), it has now been confirmed that the scheme will be extended at least until 2015. One of the objectives of this policy was to reduce the cost of borrowing for Banks and Building Societies, and, thereby offer mortgage borrowers and small and medium sized enterprises access to cheaper mortgages and loans for businesses. The policy appears to be having the desired effect as at the beginning of May 2013, average 2, 3 and 5 year fixed rates had once again all fallen further to 3.82%, 4.13% and 3.96% respectively. Not surprisingly with rates at these historic low levels, borrowers continue to be firmly committed to fixed rate mortgage products with 9 in every 10 transactions during April being conducted on a fixed rate basis.In addition to reducing the cost of mortgage products, lenders have continued to steadily increase overall product numbers, with the number of mortgage products typically available to intermediaries rising once again in April to 6,742, a further increase of 1% over March.” To see if you could take advantage of these low rates whether you are remortgaging or buying for the first time, or to discuss your circumstances in more detail, call Nigel Bull on 0117 9325686, email him at nigelb@mab.org.uk or contact the MAB local mortgage specialist at your nearest Besley Hill office. Note: Your home may be repossessed if you do not keep up repayments on your mortgage. There will be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.

HOUSE PRICES HIT RECORD HIGH FOR APRIL

House-sellers have hiked their asking prices to the highest amounts ever recorded in the month of April amid further signs of a recovering market, a property search website has revealed. MailOnline reports that Rightmove found that the gap between the sums that sellers are asking and actual selling prices has also narrowed, indicating that sellers are having to negotiate less and buyers are in a position to pay more. Asking prices rose by 2.1% month on month to reach £244,706 on average, which is the highest figure recorded by the research for the month of April and stands just £1,500 below an all-time high set in June 2012. Rightmove, whose records go back for more than a decade, tipped next month for a new asking price high, as a combination of confidence returning to the market this spring and a shortage of properties for sale continue their upward pressure on prices. Across England and Wales, London was the only region where asking prices took a dip in April, falling by 0.5%, although at £493,635 on average they are still 6.2% higher than a year ago. East Anglia saw the biggest month-on-month asking price jump, with a 4.4% rise taking typical prices to £224,538. Miles Shipside, director of Rightmove, said: “With London prices pausing for breath this month but likely to bounce back next, May looks like an odds-on bet to deliver a new asking price record. 'More estate agents are reporting more activity in more segments of the market.' The year has got off to a promising start for house sellers, with asking prices now £15,717 or 6.9% higher than they were at the start of 2013, following monthly price increases for every month of the year so far. On a year-on-year basis, prices are up by 0.4% and the latest rise follows a new high for asking prices recorded for the month of March which was set last month. Lenders, estate agents and surveyors have been reporting signs of a pick-up in the housing market since the Government launched a scheme called Funding for Lending last August, which has prompted an increase in mortgage availability. Lenders have also been offering some of their lowest ever mortgage rates. Rightmove said that while some of the uplift in asking prices has come from a more positive view of the market generally, a shortage of homes coming up for sale is also pushing prices upwards, as buyers compete for fewer fresh properties. The website said that the run of houses coming to market in April was 4% down on a year ago. Homes are spending around 73 days on the market before they are sold, which is 10 days less than in April 2012. Rightmove said that comparing its asking price figures with the price houses are actually selling for, which is recorded by the Land Registry, the gap has narrowed from 3.39% in December to 2.95%. Mr Shipside said: “This indicates that sellers are negotiating less and buyers are willing or able to pay more. While the discount from the asking price on an individual property is very much a product of how realistic that price was, it is a sign of a recovering market if they are paying closer to what sellers ask.' A further indication of the improving situation comes with a Daily Mail story about an authoritative report which states that property sales will bounce back and a rejuvenated housing market will boost economic recovery this year. The Ernst & Young Item Club, an independent forecaster whose full quarterly analysis comes out tomorrow, admits official figures due in 11 days might show Britain has technically fallen into a triple-dip recession, but says the trend is towards recovery. The report will say an expected million property sales, helped by Government measures to boost mortgage lending, will lift the economy. Growth will also be raised by increased consumer spending as a result of tax cuts announced in last month’s Budget. “Clearly, the indications are that the property market has turned the corner and is now well on the road to recovery,” said Adam Offer, managing director of leading independent south west estate agents, Besley Hill, whose 16 offices confirm a strong resurgence of interest from home-buyers in Bristol and Gloucestershire.

HOUSE SALES REACH THREE-YEAR PEAK

The amount of homes sold in the UK reached a three-year high during March as increased confidence in the market continued to translate into sales, says the latest RICS housing market survey. In March, chartered surveyors reported selling an average of 17.4 homes over the previous three months, the highest number since March 2010. Confidence has been slowly returning to the UK housing market since the end of 2012 and transactions have also risen for three consecutive months. This increasing stability was mirrored by prices as respondents across the country reported practically no movement during March. A net balance of just one per cent more surveyors reported price falls (from -7%), meaning house prices across the UK have now been relatively stable for six months. Moving on to demand, an increasing number of prospective buyers got out and viewed property during March. A net balance of 11% more surveyors reported rises in new buyer enquiries, the highest reading since October. It seems that government’s recent efforts to encourage banks to offer more affordable mortgages may now be starting to bear fruit and assist purchasers. Meanwhile, the amount of homes coming onto the market was little changed last month. Two per cent more surveyors reported rises rather than falls in new instructions, meaning that the shortfall of fresh stock coming to the market remains a key issue for buyers. At a regional level, the survey suggests that, on average, surveyors in the West Midlands have seen the biggest increase in homes sold since the start of the year, followed by those working in the London area. During March, chartered surveyors in the South West reported selling an average of 17 homes, increasing slightly on February’s figure of 16. Looking ahead, respondents are optimistic that the recent increase in transactions is set to continue. A net balance of 19% more surveyors expect sales to rise further over the coming three months. Moreover, price expectations indicators for both the next three and twelve months have been in positive territory for the last four months. Peter Bolton King, RICS Global Residential Director, said: “A buoyant, healthy property market is central to economic recovery and, while these are still very much early signs, it is encouraging that sales are beginning to pick-up. The increase in potential buyers getting out there and viewing property is particularly encouraging.” Adam Offer, managing director of leading South West estate agents, Besley Hill, said that feedback from the group’s 16 offices throughout Bristol and Gloucestershire confirmed that, thanks to initiatives such as Funding for Lending, mortgages are becoming more accessible to buyers, which is gently easing the pressure on the market and freeing up stagnant chains.

HOUSE PRICES ARE RISING

House prices are rising in Bristol and South Gloucestershire, according to figures from the Land Registry, the Government Agency which monitors the sale of houses. The average house in Bristol now costs £169,425 - an increase of 2.4 per cent over the last 12 months - while homes in South Gloucestershire are even more expensive at £176,839 - an increase of 1.4 per cent over the last year. The nationwide average currently stands at £162,606 - which is an increase of one per cent over the last 12 months. "These figures show that house prices in Bristol and South Gloucestershire are performing better than most other parts of the country," said Adam Offer, managing director of estate agents Besley Hill, who have 16 offices throughout the area. "Limited supply and increased demand will result in property values in this part of the country continuing to rise during the coming year, indicating that now is a good time to buy."

LOTS OF VARIETY AT BESLEY HILL AUCTION

A contrasting selection of properties will be offered by auctioneer Nigel Freston at Besley Hill's auction at the BAWA Pavilion Lounge, Southmead Road, Filton, Bristol, on Thursday April 18. The Lots are as follows: 2-4 Camp View, Winterbourne Down (guide price £85,000-£100,000): Cottage in need of renovation subject to a lease on part of the building with potential for income. Gloucester House, Gloucester Street, Avonmouth (guide price £150,000): A large commercial building of around 4,000 square feet and yard in need of renovation. 102 New Walls, Totterdown (guide price £90,000-£110,000): A one-bedroom house in need of some modernisation. Ideal for an investment or starter home. 12 Ashley Road, Ashley Down (guide price £140,000-£160,000): In need of complete refurbishment, a property arranged over four floors currently divided into a two-bedroom maisonette together with studio apartments on first and second floor levels. For further details view the auction catalogue online at www.besleyhillsurveyit.co.uk or contact the auctioneer’s office at 10 Badminton Road, Downend, Bristol BS16 6BQ, tel 0117 970 1551, email info@besleyhillsurveyit.co.uk

BUDGET HELP FOR HOMEBUYERS WELCOMED

Adam Offer, managing director of Besley Hill Estate Agents, who have 16 offices throughout Bristol and Gloucestershire, welcomed Chancellor George Osborne's announcement in the Budget that the Government is to subsidise deposits and provide state backing for loans to help homebuyers get on the property ladder or move up. Mr Offer said: "I think it will help buyers caught in the deposit trap - especially first-time buyers, but general movers too, including second-time buyers. The full detail is yet to be announced but initially it looks good. Our mortgage partners MAB will be looking in great detail at the scheme and will be providing our branches with the very best deals to help our customers to take full advantage of the scheme when it is launched. As the date is some nine or so months away I do see property values increasing as this date approaches as the market is somewhat starved of properties at the moment. I don't see this situation changing at any time soon. Supply is limited, demand is great, especially pent-up demand from buyers in rented accommodation who have rented over the last five or so years and now want to buy. I am disappointed that the Chancellor did nothing on stamp duty - but I guess we cannot have it all. All in all, very positive!"

HOUSE PRICES UP £142 A DAY

Britain's homes have boomed to a record high with prices rising £142 a day in the last four weeks, today's Daily Express reveals.New figures show values eclipsed the previous peak of 2008 and a mood of optimism is sweeping through the housing market, experts say. The average house in England and Wales rose £3,969 in a month, according to property search website Rightmove's House Price Index, released today. With mortgages becoming cheaper, thanks to the Government's lending scheme and greater availability of loans, buyers are more confident properties will keep their value, states the report. And in further signs that the market is gaining momentum, the Council of Mortgage Lenders last week reported that home loans have got off to their best start since 2008. Miles Shipside, Rightmove director, is quoted as saying that with new sellers asking for more than ever before as we enter the traditionally busy spring market, and an expectation among home-movers of price stability or growth, there is now a bedrock upon which confidence and momentum appear to be building. Rightmove figures show the average asking price for a property in the four weeks to mid-March was £239,710, edging above the £239,655 for the same period in 2008, before the credit crunch. The Rightmove report also found home-movers are increasingly optimistic that houses will gain value this year, with more than a quarter believing prices will edge higher compared with just 11 per cent who expect decreases. A further 60 per cent of those moving house think prices will be "more or less the same" in a year's time. The report also shows that the time it takes to sell a hjouse has fallen 10 days to 80 compared to this time last year. Adam Offer, managing director of leading South West estate agents Besley Hill, agrees with Miles Shipside that, although some price gains in the first half of the year often fall away in the second half, this year it seems likely that the air of optimism will result in gains being consolidated.

FALLING MORTGAGE RATES REAP REWARDS

Nigel Bull, one of a team of Mortgage Advice Bureau (MAB) financial advisers serving Besley Hill Estate Agents offices throughout Bristol and Gloucestershire, comments on the continuing effects of the Funding for Lending Scheme on the mortgage market: Despite the Bank of England’s recent decision to yet again hold the Base Rate at 0.5% and refrain from pumping further funding into the economy in the form of quantitative easing, the arguments in favour of a change are building momentum. The minutes of their most recent meeting show that the Governor of the Bank of England himself voted for an increase in the quantitative easing programme. However, with the current total already standing at £375bn, adopting the cautious approach for the time being is certainly understandable. It may only be a matter of time before something needs to change though, with recent news highlighting several significant economic indicators reporting continued weakness in the wider economy. There is certainly some cause for optimism though as far as the mortgage market goes. Last month we continued to see further competitive pressure in the pricing of mortgage products. This is no doubt at least partly driven by the access to the Government’s Funding for Lending Scheme (FLS). This scheme is allowing banks and building societies to access funding at below market rates provided they can evidence an increase in their net lending over the duration of the programme, boosting appetite for lending within the market. At the beginning of March 2013 the average two year fixed rate had fallen below 4% for the first time, and is currently 3.90%. Average three and five year fixed rates have also fallen further in the last month to 4.25% and 4.05% respectively. Borrowers remain firmly committed to fixed rate mortgage products with more than 90% of customers electing to fix in January and February. Borrowers are set to continue to benefit from what are “all time low” interest rates and consumer choice is also improving slowly but surely with the number of mortgage products typically available to intermediaries now standing at a little under 6,400, the highest number in more than twelve months. To see if you could take advantage of these low rates whether you are remortgaging or buying for the first time, or to discuss your circumstances in more detail, call Nigel Bull on 0117 9325686, email him at nigelb@mab.org.uk or contact the MAB local mortgage specialist at your nearest Besley Hill office. Note: Your home may be repossessed if you do not keep up repayments on your mortgage. There will be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.

BESLEY HILL'S CHIPPING SODBURY OFFICE SHORTLISTED FOR AWARD

Besley Hill Town & Country Homes at Chipping Sodbury has been shortlisted as a TOP 10 Estate Agent in the South West Region of the 2013 Estate Agent Awards (THE ESTAS). Rob Chapman, manager of the office at 14 High Street, said: “We are absolutely delighted to be shortlisted for the ESTAS 2013. It means so much to us as we know it’s our customers who have put us on the list. We take our levels of customer service very seriously because clients have a choice.” The ESTAS determines the best estate agents in the country through research carried out amongst customers who are asked a series of questions about the service they have received from their agent; 23,000 questionnaires were completed by customers during the competition. Agents have been shortlisted in 18 regions around the country. The regional and national winners will be announced by Phil Spencer, the TV Property expert, at the 10th annual ESTAS ceremony at the Hilton Park Lane on 19th April. Phil said: “I think it says a great deal about a company who’s prepared to stand up and announce to customers and competitors that they believe in providing the best possible service and they’re happy to prove it. These awards help agencies to focus on customer service levels and that’s why so many take part each year.” Simon Brown, who runs the national scheme, said: “The ESTAS competition is about recognizing the hard work agents put in every day, every week and month of the year. So to be shortlisted is a great accolade for any agent.” Alex Chesterman, Founder and CEO of Zoopla Property Group, said: “We’re now in our fourth year of sponsoring the ESTAS and are delighted to be once again supporting this key industry event. The collection of valuable customer feedback is essential to success in any business and rewarding those who provide the best service in the industry, as these awards do, is perfectly aligned with our business. Congratulations to all those shortlisted this year.” Picture shows the Besley Hill Chipping Sodbury team: (left to right) Val Rogers-Ainley, Frances Hewitt, Rob Chapman, Clare Jones and Sharon Sparkes

FIXED-RATE MORTGAGES ARE LOWEST FOR FIVE YEARS

Borrowers are enjoying the lowest fixed rates the mortgage market has seen for over five years. The trend has been welcomed by Nigel Bull, one of a team of Mortgage Advice Bureau (MAB) financial advisers serving Besley Hill Estate Agents offices throughout Bristol and Gloucestershire, as a benefit for both house buyers and those seeking to refinance existing deals. Mr Bull, based at Longwell Green, said: “As expected, the Bank of England’s Monetary Policy Committee followed a familiar pattern in February with its decision to maintain the Bank of England base rate at 0.5% and keep the programme of emergency funding in the form of quantitative easing unchanged at £375bn. The base rate has been at this low level for almost four years and there are no signs that this will change any time soon. Indeed, many forecasters are now suggesting that the base rate will remain unchanged until 2015 and possibly longer. The government programme to stimulate lending in the wider economy - Funding for Lending (FLS) - does seem to have kept the rate war within the mortgage industry raging on, and we have continued to see further falls in average interest rates over the last few months. At the beginning of February, the average 2, 3 and 5 year fixed rates stood at 4.11%, 4.36% and 4.14% respectively - the lowest levels since our records began. When the FLS initially launched, the most attractive rates on offer were still targeted at those with substantial deposits. However, we are now seeing increasingly attractive rates higher up the loan to value (LTV) curve. For example, headline 2 year fixed rates are now available at below 3.50% for those with only a 15% deposit, and under 4% for a 5 year fixed product. For those who do have substantial deposit and or equity of 40%, borrowing is even more attractive with 2 year deals available under 2% and 5 year deals under 3%. Borrowers remain increasingly focused on fixed initial rates, with more than nine in ten of our borrowers electing to fix during both December 2012 and January 2013. Almost all lenders will be looking to increase their overall level of mortgage lending this year and, as a consequence, we fully expect to see continued healthy competition in the market, benefiting not only house buyers, but also those looking to refinance existing arrangements.” To see if you could take advantage of these low rates, or to discuss your circumstances in more detail, call Nigel Bull on 0117 9325686, email him at nigelb@mab.org.uk or contact the MAB local mortgage specialist at your nearest Besley Hill office. Note: Your home may be repossessed if you do not keep up repayments on your mortgage. There will be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.

HOUSE PRICES TO RISE 2% IN 2013

House prices in the UK will see an increase of 2% over the course of next year while the cost of renting a home should rise by around 4%, according to the Royal Institute of Chartered Surveyors (RICS). Although challenging times are still ahead for the nation’s economy, 2013 may see some slight improvements and this will be reflected in the housing market. In addition to rising prices, the number of transactions will also see a further increase, moving up just over 3% to 960,000 (from 930,000 in 2012). Although this represents an improvement, to put this in context, total sales in 2006 were well above this amount at 1.67 million. In London, the prime central market is likely to be broadly stable following the tax changes announced earlier in the year but much of the rest of the capital will continue to see above average increases. Elsewhere, the South East and the North West should also see modest rises. The rest of the country will either see prices dip slightly or remain flat. Meanwhile, with estimates stating that up to a quarter of loans taken out at the height of the market (2007) now being in negative equity, the recent trend in repossessions looks set to continue. However, with the number of possession claims and mortgages currently more than three months in arrears falling, the number of repossessions should dip below 35,000 for the first time since 2007. 2013 UK housing market at a glance: • House prices to increase 2% • Cost of renting to grow 4% • Transactions to modestly increase to 960,000 • Repossessions to drop to below 35,000 • Housing starts to edge up towards 115,000 in England Simon Rubinsohn, RICS Chief Economist, said: “The average house price in the UK looks set to rise by a further 2% next year, despite the uncertain outlook for the economy. More positively, the amount of sales going through should also see an increase across the country, climbing to its best level since 2007, as the Funding for Lending scheme helps boost the availability of mortgage finance. But these tentative signs of recovery in the sales market should not blind us to the very real problems that still exist. Even with the Funding for Lending scheme and some other government policies beginning to be felt in the mortgage market, many first-time buyers will continue to find it difficult to secure a sufficiently large loan to take an initial step on the housing market. Meanwhile, the alternative of renting is becoming more and more costly with a further increase in rents likely in 2013. Critically, the government needs to ensure that the conditions are in place that will enable the stock of new housing, whether for purchase or rent, to rise more rapidly.”