We are concerned to report the first signs that the UK housing market is starting to cool after a long run of price rises.
House prices have grown enormously in certain parts of the UK in the last three years, especially in London and the south-east.
But a number of factors are combining to take the heat out of the market, such as tough new rules on mortgage regulation.
From April mortgage lenders have focused far more on assessing income and expenditure of borrowers.
It means home buyers and movers have faced far greater checks from lenders and a loner process.
We are certain that verifying everyone’s income has taken its toll on lenders’ ability to offer loans and borrowers’ ability to get them.
But there are other factors too that have caused the housing market to “lose momentum”, in the words of Nationwide Building Society.
In its latest poll, Nationwide reported year-on-year growth had slowed for the second consecutive month in October.
The building society says prices rose 0.5 per cent from £188,374 in September to £189,333 this month, while annual slowed for the second month in a row, from 9.4 per cent in September to 9 per cent in October.
House prices actually fell over the summer, dropping in consecutive months in June and July.
Housing transactions have plummeted by almost 20 per cent as buyers deal with new conditions.
