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Number of home loans being granted is at a two-year high

The number of home loans being granted is at its highest level for nearly two years, according to the Council of Mortgage Lenders (CML).

The CML says there were 55,000 loans granted for house purchase in October - that’s an increase of 43% on October 2008 and the highest level since December 2007.

Separate figures issued by the Halifax show that house prices rose by 4.2% between January and November last year.

The figures show growing confidence in the housing market although there is a still some way to go before we see the levels of a few years ago.

One negative development could be the ending of the Stamp Duty holiday. In 2008, the Government increased the threshold at which the duty becomes payable from £125,000 to £175,000. That threshold reverted back to £125,000 on 1st January.

A survey by the Royal Institution of Chartered Surveyors suggests that most of its members believe the lower threshold will have little impact, although, of course, that remains to be seen.

Whatever happens, the market is likely to remain highly competitive and sellers will need to ensure they have all the correct procedures in place to market their property.

For example, they must provide a Home Information Pack (HIP) for potential buyers as soon as a property is put on the market. The HIP must have an index and include various documents such as an Energy Performance Certificate - which grades the property’s energy efficiency - the terms of sale, proof of title and boundaries from the Land Registry, and the results of local searches.

Sellers must also include a Property Information Questionnaire covering areas such as the property’s service charges, flood risk information, structural damage, gas and electricity safety and parking arrangements.

Please contact us if you would like more information about HIPs or any aspect of buying and selling a property.

If you wish to make an appointment, or ask us a question please contact us.