Mortgage lending is still very low with only 43,414 mortgages were approved in May. Net mortgage lending in May stood at just £324 million. This was 10% of the level 12 months previous. Yet, despite, a reluctance to lend mortgages, Nationwide reported house prices again managed to rise for the third time in four months. Average house prices are now £156,442, 10% lower than this time last year.
The house price rises reflect a shortage of housing on the market. The price rise comes amidst thin trading, though some estate agents have reported an upturn in interest.
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