‘The news about the Funding for Lending scheme being diverted from homebuyer loans, shows The Bank of England is now paying attention to what is happening in the market more closely.
‘Mark Carney [governor of the Bank of England] is starting to be the wise voice of the home-buying consumer on the street, in an effort to ensure buyers don’t over-stretch themselves. It may also be an indication that he might increase his sphere of influence further and possibly into controlling loan to values, as he did in the past, in Canada when he was in charge there.’
Commenting on the new figures, Nicholas Ayre, managing director of homebuying agency Home Fusion, says that buyers are beginning to feel more positive: ‘In the past they may have just sat on their hands and been reluctant to do anything, but now, with the macro view of the economy looking a lot more positive, people are wanting to get that property they have been waiting for and not get lost in the action.
‘The Nationwide figures show us that headline house prices are tracking the economy in its recovery and upward trend, annual growth at 5.8 per cent, is just keeping ahead of inflation, which is a healthy line of growth and where we should expect it to be.
‘Although wages have continued to decline in real terms, we are seeing a steady spread of loan-to-value mortgages, so buyers do not seem to be maxing out on finance and are keeping within affordability boundaries.’