During periods of house price falls, there are often monthly aberrations. However, the Halifax three month trend showed its first positive rise (of 0.8%) since 2007. This suggests that the most pessimistic house price forecasts for 2009, now look too bearish. The Institute of Chartered Surveyors have now changed their forecast from a fall of 10% to a small rise.
Mortgage lending in June also showed a small increase. But, it remains far below pre 2007 levels. This indicates a house price recovery is based on the very low interest rates and continued shortage of housing, rather than a renewed enthusiasm of banks to lend mortgages.
Quarterly Mortgage Lending Statistics
Statistic for Monthly UK Mortgage Lending
Monthly Figures for Recent Mortgage Lending. Source: CML