New figures have shown that the average cost of a new home in England and Wales was up in October, compared to the previous month.

 

In news which could affect first-time buyers looking to take out a mortgage, the Land Registry found that typical house prices rose by 0.6 per cent to £159,546 between September and last month.

 

While this is still down 3.4 per cent year-on-year, October also saw the sixth consecutive month of a decrease in this figure.

 

Oliver Gilmartin, senior economist at the Royal Institute of Chartered Surveyors, said that the mortgage market will improve thanks to house price rises, but will still see some challenges in the coming year.

 

In particular, the ending of the extended zero band on stamp duty in the new year could have a disproportional impact on those markets outside London and the south-east, he explained.

 

Lender MyMortgageDirect recently claimed that a drop in house prices will not make properties much cheaper for first-time buyers, but will instead be bad for the market.