There has been confusion in the housing market this week as house price surveys revealed contradictory results. According to the Halifax, the average price of UK homes rose by 1.9% in January from December’s figure. But a survey by Nationwide suggested house prices fell by 1.3% in January. 

A further survey from Rics also had mixed news about the housing market. They state that the average number of sales per estate agency fell slightly to 9.9 compared with 10 the previous month. However, enquiries from new buyers rose for the third month in a row.

In other news, Skipton Building Society has blamed “mistaken communication” for an e-mail telling mortgage brokers it would no longer lend to buyers of one bedroom flats. 

Skipton, like many other lenders, will not lend on some newly built city centre flats but the company said there had been no change to its previous lending policy.  

Everyone is now aware that most lenders, particularly building societies, have severely rationed their mortgage lending since the advent of the credit crunch in the middle of 2007. However, it would be unusual for lenders to adopt this sort of policy and it would certainly not be helpful in getting the property market back on track. 

Not only have the number of mortgage deals shrunk dramatically in the past year or so, down by 89%, but at the same time the size of deposit demanded by lenders has shot up as they have sought to ration their available funds.  

Nearly two-thirds of all mortgage deals now require a down payment amounting to at least 25% of the value of the property being bought. Before the credit crunch started, 5% or 10% deposits were the most common and some lenders were even happy to lend 100% mortgages with no deposit at all.

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