'Housing market to remain strong in 2007'

21-Dec-2006

First time buyers may find that house prices continue to rise in the new year, as despite recent interest rate rises, the housing market is to remain strong in 2007, research suggests.

According to a study by the Building Societies Association (BSA), the number of mortgage approvals for repeat and first time buyers increased at a seasonally adjusted rate of 16.5 per cent last month, indicating a future trend into next year.

The high number of mortgage approvals in November was the highest in three years.

"This suggests that the rate rise in August has had little effect on the demand for mortgages," said Adrian Coles, director general of the BSA.

For our first time buyers guide to buying a property click here.

"It remains to be seen what impact November's rate rise will have but the approvals figures suggest that the housing market will continue to perform strongly in to spring 2007," he added.

First time buyers concerned about how an increase in interest rates might effect how much they would have to pay each month should consult a good broker.

In November, building society mortgage approvals totalled £4,365 million, with advances increasing to £1,232 million since November last year.

The BSA is a UK-based trade association for the UK's building societies.

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