House prices maintained equilibrium in September following a summer rise however transactions over the summer were up 4.5% on the previous year.
Richard Sexton, director of e.surv chartered surveyors, said: “House prices are showing remarkable resilience given the current state of the European economy.
“Mortgage lenders are offering cheap fixed rate deals to wealthier buyers and buy-to-let landlords, which is encouraging more investment in property. “
Sexton said that affluent buyers were supporting prices.
He added: “On the flip side the overall market remains subdued thanks to the ongoing struggles of first-time buyers. Credit conditions are restricted and the major UK banks are shrinking their assets in a bid to mitigate the effects of the crisis in the eurozone.
“This is hampering their ability to lend and is encouraging them to demand increasingly big deposits from borrowers. This is freezing out the majority of first time buyers and leaving the bottom end of the property ladder in a state of protracted gridlock.”
Sexton also said that with public sector cuts set to bite hard and economic growth stalling, demand at the lowest end of the market was likely to fall further over the winter.
“This climate of uncertainty is creating a domino effect as would-be buyers who might be able to buy are staying put and biding their time,” he said.
“On the demand side potential sellers are sitting tight to weather the current economic storm, hoping that prices rise from their subdued levels.”
