According to the latest reports mortgage approvals rose by 12% in February on a month-by-month basis and stood at approximately 49% higher than the figures recorded in February of last year. Interestingly enough, however, is the fact that the majority of mortgages being offered in the early part of the year are not re-mortgages – in fact, although re-mortgage approvals rose by 2% on a month-by-month basis they actually fell by 35% over figures recorded in February of 2009.

At the same time as re-mortgages are dropping in number so are the number of fixed-rate mortgages. Due to the fact that the highly fluctuating flexible mortgage options are actually offering better value for the time being for home owners the number of fixed-mortgage approvals has reached the lowest point in nearly 5 years, beating out many fixed-rate options for good mortgage rates and overall value for the consumer’s money.

Many experts believe that this trend will continue into the coming months, with people looking to take advantage of what options they have available to themselves before the economy recovers fully and both prices and offerings change accordingly. While many economic analysts expect this to happen – or at least begin happening more noticeably – sometime around the third or fourth quarter of the year once businesses have had some time to recover much weight is still being placed on the upcoming election and what it may mean to home owners.

The developing trends will be particularly interesting for many people looking to become first-time buyers yet are unable to afford a home at the current going rates due to the high level of investors showing interest in the market with a large around of funds available for use. This is effectively blocking many people from realizing their own home-ownership dreams, yet with enough time the supply imbalance is expected to even out and a recovery will likely yield some stronger benefits and incentives for first-time purchases.

With the possibility of the inheritance tax being set at starting at £350  a large number of elderly land owners have joined a new housing bracket: downsized share ownership housing. Rather than re-mortgaging and using current assets to develop investment portfolios for their children that may have to pay substantial inheritance taxes on any received estate, even though there are many good mortgage rates available on established homes today, people are finding it better to sell-off larger homes to free up additional cash while still maintaining a good quality location and home size.

Share ownership offers many retirees a chance to purchase part of a home as their own and rent the rest, generally from a property management company, and therefore allow them even improve their current living location to better locales without needing to substantially increase their costs. This is especially important today where a large number of overseas investors are entering into the market and putting additional pressure on the already strained local offerings.

Depending on the outcome of the election the interest in share ownership homes may continue to increase substantially, with many individuals potentially seeking out offerings in various areas to avoid unnecessary inheritance tax liabilities. Still, should the inheritance tax bracket stay somewhere in the £1m range there is a high probability as well that the current trend will be curbed and owners may choose to retain their properties in various locations to pass on to others rather than liquidate now. Whether or not this will eventuate is still in the air, though, as the number of possibilities surrounding the election are causing quite a stir in many sectors with a large number of market watchers paying close attention on the outcome to see just how the market will flow and make their move accordingly when the time is right.

According to the latest index from the Halifax, residential property price bounced back in the UK during the month of March, as they rose by 1.1% following February’s fall. The rise marked the eighth monthly rise in the last nine months and it took the average price to just over 9% above last April’s low point, according to the Halifax Index. The latest increase has gone a little way towards offsetting February’s fall of 1.6% and leaves the average house price standing at £168,521. Despite this, however, during the first three months of this year prices were just 0.6% higher than during the final quarter of 2009 as compared with a 3.6% rise between last year’s rise third and fourth quarters.

According to Martin Ellis, housing economist at Halifax, the numbers seem to indicate a slowdown in house price growth. Mr Ellis stated that a rise in the number of properties on the market is starting to reduce the imbalance between the supply and demand and will most likely reign in the upward pressure on property prices. The figures from the Halifax Index tell a different story to recent figures published by the Nationwide Building Society, which were released last week and showed that house prices rose in March by 0.7%, reaching a point where they stood 9% higher than at the same time last year. According to Howard Archer, chief economist at his Global Insight, the data from the Halifax Index underscore suspicions that house prices will have an up and down ride during 2010 and may actually be no better than flat throughout the year.

Mr Archer went on to explain that, despite the fact that the Bank of England is likely to refrain from raising interest rates until next year, the general economic climate remains relatively unsupportive for house prices whilst credit conditions are still tight. He added: “It remains to be seen how much support to activity in the housing market and prices comes from the introduction of the two-year stamp duty holiday for first-time buyers on all properties costing up to £250,000.” March, however, is a traditionally buoyant month in the housing market, and the price rises have surprised few after February’s slight lull. It is speculated as well that the continuing strong good mortgage offerings for new buyers as well as re-mortgages will also play a major role in the coming months in regards to their effect upon supporting the housing sector.

New figures from a survey conducted by the National Association of Estate Agents have revealed that being able to afford a larger property has jumped to the top of the list of motivations for selling up in the UK.  This new need for larger properties has provided further evidence supporting the fact that the housing slump is beginning to end, according to the NAEA’s figures. The NAEA study, which examined the factors motivating homeowners to sell up and relocate, sought opinions from its members across the country. Members were asked to name their keys reasons for wanting to purchase a new house, and 78% replied that ‘upscaling’ was a principal reason.

The NAEA stated that, despite the fact that such a scenario tends to be a common factor in a strong housing market, data from the Association’s February 2009 monthly marketing report illustrated a rise in downsizing due to the recession. According to the figures from February 2009, four-bedroom detached properties fell in value from an average £339,072 to £316,228, with two-bedroom flats increasing in value to £124,727, a 1.6% jump. The new figures from the NAEA indicate that the trend towards downsizing has now ended, and has been replaced by the trend for upscaling, now the main driving force behind the housing market – particularly for those looking to hold a higher-value home with strong potential re-mortgage value.

According to Peter Bolton King, the chief executive of the National Association of Estate Agents, the increase is the number of individuals relocating to larger properties indicates that the UK is beginning to gradually emerge from the recession. He added that the recent boom may also be attributed to the rise in mortgage offerings in the area, stating also that the recent stamp duty promise that was announced in the Budget was “great news for first-time buyers.” Mr Bolton King also suggested that more should be done to help those families and individuals moving for the second or third time to protect the current upward trend.

The new NAEA survey also revealed that getting a divorce was also a reason cited for relocation, and this was cited by 58% of vendors. Debt was also a factor, coming in at 41% of respondents, while a death of a family member accounted for 39% and getting a new job totalled 27% of respondents.

Many experts feel that with the current high level of political debate going on that is fueling uncertainty for both buyers and sellers that a hung parliament could possibly result in the worst possible outcome for buyers throughout the UK. With many home owners looking to see what others are doing and thus creating a feeling of fostered uncertainty a large number of people are missing out on a plethora of opportunities available today thanks in no small part to the imbalance of supply and demand present.

Coupled with the still favourable mortgage rates available to first-time buyers thanks to the extended stamp duty holiday as well as the fact that recent Halifax reports show a steady increase of 1.1% in property value last month alone for London homes the maintained trepidation over both buying and selling a home is working against real estate owners rather than in their favour. Should a hung parliament ensue this could easily tip the scales against the market and encourage a decrease in both housing costs as well as market desirability, something that could easily kick-off a rock slide of negative events for the still recovering housing market.

Should property values decline, however, it is possible that this may help stimulate more external investment and develop the overseas mortgage market, yet given the current economic situation in Europe the chances of this occurring in the UK given recent trends is still questionable. Regardless over the next few months a clear indication of either support for the developing market or consternation against it should be clear, though unfortunately this may easily work against much of what the property market has been trying to accomplish over the past few months and hinder rather than support a long-term economic recovery plan across the region.

Reports indicate that London house prices have recently hit a record high, with an average house price now standing in the £376,605 range in March. This record high comes as the result of a long-standing continual increase over the past year totaling an overall gain of 13.4%. In terms of financing this may prove beneficial in many ways to those seeking to obtain a top-end mortgage for their home due to the fact that the London market has proven to hold great potential for price appreciation over the years, with even short-term investments proving worthwhile.

For many first-time buyers or even those looking to purchase a home via an offset mortgage, on the other hand, this news may not be as welcomed as the record high prices mean that a relatively large cash base is necessary to finalize any purchases at all. Effectively this eliminates London as a viable option for many buyers looking to obtain new homes on less-than-extravagant incomes, yet at the same time if they can successfully obtain a home chances are high that it will greatly appreciate in value over the near rather than far future.

March, the current all-time record holding month, showed an overall increase of 1.1% for average home values throughout the city, with this being the 11th consecutive month of real estate property value gains. While this figure is primarily focused on the residential sector even commercial properties have shown an increase, another positive sign for the city where commercial property value and investment was seen as potentially reaching a breaking point due in no small part to aftershocks of the recent recession still having a major impact upon the sector where businesses were still reeling from long-standing financial difficulties both locally and internationally.

Throughout the UK the upcoming election and what it could mean to the housing market is a primary issue on many people’s minds. Given that the vast majority of residents in the UK are home owners (roughly 70%) compared to much lower figures found in other parts of Europe (with France reportedly having only 54% of residents being home owners and Germany a mere 43%) UK properties and the issues that affect them are being looked at closely, particularly with many people who are not seeking a first-time mortgage and simply wish to re-mortgage a property in the hopes of helping to give themselves an advantage in pulling out of the debt hole the recent recession caused.

Right now the major issues most people are facing are twofold: how will the stamp duty holiday affect them and their home purchase, and how will the current overall lack of supply of available property factor in to their own home in the future.

These two issues have been of particular interest for some time now for anyone looking to lock-in the best mortgage rate possible for their home purchase in the near future, especially ever since the initial decline in house purchases began in January when last year’s stamp duty holiday and most home purchases ended. Given the number of committee changes seen in the past by the labour party in regards to the housing sector (with 9 total groups being changed in the past 13 years) it is difficult to anticipate just what may be seen in the coming months following the election, however at the same time a change to the overall way things work may be just what is needed to jump-start the faltering real estate sectors in some areas such as Northern Ireland where house prices have already fallen by a total of 3%.

With the new Stamp Duty to help provide support for first-time buyers in particular purchasing homes up to £250,000 a new addition was added to the regulation – a 5% tax on all homes purchased valuing £1 million or more. While this may not seem like it applies to many people (and in fact does not in most areas) it is particularly troublesome for London where roughly 83% of all UK homes values over £1 million are located.

This move is seen as potentially dangerous to many developers and potential buyers in the London area that are looking at investing in higher-end property as the additional 5% requirement can add substantial burdens to many purchasers, especially if they are already having difficulties for whatever reason securing a good mortgage for their home. Many people speculate that this may even encourage greater interest from overseas investors rather than domestic purchasers which has been met with mixed reviews by many financial analysis and local London residents alike.

Thankfully for most first-time buyers the markets outside of London are still relatively flexible and open for investment, though at the same time these may not be as appealing as other neighbourhoods found within the greater London area. Still, with the primary concern on most minds being simply having the ability to purchase a home comfortably rather than purchasing a particularly large home or one that holds a high level of prestige this topic has become a primary issue for upper-end purchasers rather than a concern for the general market.

On a positive note the raising of the Stamp Duty threshold from £125,000 to £250,000 has been met with numerous cries of relief from many individuals looking to purchase a home as the higher break means substantial relief, particularly for those who may be having troubles coming up with the initial deposit required in the first place to purchase their first home.

The UK government has announced plans for revamped Post Offices to offer first-time buyers mortgages requiring a 10% deposit. The Post Office will begin offering a range of financial products in its country-wide network of more than 11,000 branches within the space of the next twelve months.

The new plan has also promised £180 million of new funds to keep the current Post Office network of branches “around its current size”, according to the government. The new plans will also include the Post Office’s ability to provide children’s accounts as well as a special account that allows people on low incomes to take care of their household bills, although there is currently no implementation date for all of the new services. The Post Office appears well positioned to offer such services to customers, however, as it currently has more branches across the UK than all of the high street banks put together.

The government has said that the first new banking service, a children’s savings account, is set to be implemented within the next year. The Post Office’s mortgage product is also scheduled to be introduced within the next twelve months and will be back by the Bank of Ireland. Other measures, however, such as the implementation of the current account, do not currently have a firm date and are likely to be introduced at the time the Post Office believed that market conditions are favourable to do so. This includes plans to extend offers to re-mortgagers as well in addition to offering a number of lending options for various mortgages and other personal loans.

The savings account will be designed to allow those on lower incomes to be in possession of a bank account through which they would be able to pay various household bills as well as give them to ability to take advantage of discounts that would accrue as a result of the ability to pay via direct debit. Plans are also in the pipeline to allow those in business to access their personal accounts through a wide number of Post Office branches. The plans are designed to make the Post Office both a reliable and a sustainable local neighbourhood banking service.

Consumer Focus, a leading consumer watchdog in the UK, broadly welcomed the changes, although they also called for a rapid introduction if the new basic account. Andrew Burrows of Consumer Focus said that the majority of research done thus far showed that many people on low incomes simply do not trust most banks, although they trust their local Post Office. He went on to claim that by following through with this plan up to one million customers could potentially be removed from financial exclusion with provision of a basic Post Office bank account.

According to a new survey undertaken by the international real estate consultants, CB Richard Ellis Group, investors now see Europe as a prime prospect for future real estate investment during the coming year, with Asia also viewed as providing decent opportunities. The poll also indicated that globally around 60% of investors viewed Europe as the top target for real estate investment, with the majority of the remainder of respondents stating that Asia is their preferred target.

According to Nick Axford, head of EMEA research and consulting at CB Richard Ellis, the general preference for the European market is unsurprising given that the majority of those questioned are either based in or mainly invest in the region. He stated, however, that it was notable that around 40% of respondents saw the best property investments lying elsewhere – particularly in Asia. He went on to say that the UK has unquestionably led the recovering of property prices across Europe during the past six months, and the UK market continues to attract a large amount of investor interest.

Mr Axford’s colleague, Jonathon Hull, agreed with the assessment, adding that the UK market remains very attractive to investors who are still largely averse to risk due to current market conditions as a result of its general transparency and liquidity, along with the weakness of sterling. He added that prime location coming onto the market in the UK attract very strong interest – especially from investors looking to purchase from overseas. He went on to say, however, that investors are still concerned by tenant reliability and lease length. He also stated that, as liquidity risk remains a primary concern, France and Germany remain most attractive to more than one-third of respondents due to the relative size of their property markets and their relative recovery prospects as well as favourable mortgage rates for various purchases on even buy-to-let mortgages.

There also appears to be a much greater capital flow to the large cities outside of London which is squeezing pricing at the top-end of the housing market. Market analysts have been particularly surprised by the amount of focus on the real estate markets of central east Europe which have seen very low transaction volumes over the last year and a half. Around 50% of those questioned thought that the first half of 2010 presented the best chance of buying prime properties, whilst the majority of those that remained stated that they would prefer to delay buying until the second half of 2010.