The Nationwide's statistics reveal that, during April, UK house prices rose by 0.9%, compared to a fall of 0.6% for the previous month. In contrast, The Halifax's statistics showed that, for the month of March, their house price index rose by 0.5%.
Interpreting these contrasting results, Frankish stated: 'What we are seeing is what was predicted when the Bank of England embarked on its policy of gradually increasing interest rates in November 2003. The market has largely stabilised, with sellers broadly agreeing on the prices being charged, versus what buyers are willing to pay.'
'The mortgage industry as a whole can only benefit from this new-found return to a stable market, as it helps affordability, as well as bringing increased consistency to the number of mortgage applications and house purchase instructions,' he adds.
"Our own statistics show that buyer confidence is starting to return to the market, especially for the many first time buyers who felt priced out of the market. The easing of the market has allowed this group in particular to consider stepping onto the property ladder, as they are now starting to qualify for mortgages that only twelve months ago would have been out of their reach,' continues Frankish.
Frankish's comments are echoed by Bank of England figures which show that UK mortgage approvals increased in March to their highest level for seven months. This has prompted many analysts to argue that the housing market is undergoing a 'soft landing' after the recent rises in the bank base rate.
"The Bank of England statistics indicate that 91,000 loans were approved in March, which contrasts sharply with the 130,000 or so per month at the peak of the market in late 2003,' states Frankish.
'More than anything, it is these figures that demonstrate that the property market has softened, but that this has been achieved in a gradual way, rather than the housing crash that many industry pundits predicted. And, with the general election now out of the way, we should be able to benefit from a period of measured and balanced growth in the property market," he concludes.
