Index show confidence returns to UK market
Optimism is returning to the UK real estate market with asking prices of properties that came onto the market in June 8.9% higher than those already for sale, according to the latest house prices and affordability index from FindaProperty.
The average asking price for properties new on the market was £240,019 and there has also been strong growth in houses with five or more bedrooms that are selling at their fastest rate since June 2008, it also says.
The index, based on data from over 400,000 homes across the country, shows average asking prices dropped fractionally by 0.1% in June to £221,110, from £221,237 in May.
However, while asking prices remained broadly static across the board, the market for larger properties showed increased strength as the length of time five plus bedroom properties stay on the market fell by 10% compared with May.
Additionally, while the average asking price remained largely unchanged through the month, new properties coming to the market had a significantly 8.6% higher typical asking price of £240,019, suggesting an upturn in confidence amongst sellers.
FindaProperty.com believes the high demand for larger family homes demonstrates the current strength of the home movers market that is those who do not face the challenges facing first time buyers, and are benefiting from continuing record-low interest rates. The data also suggests that there is increasing demand for these types of properties, relative to supply.
‘People who decided to put their homes on the market in June asked for an average 8.9% more than those whose homes were already on the market, which shows a promising level of optimism is returning to the sellers’ market,’ said Samantha Baden, property analyst.
‘From a buyers’ perspective, we are seeing strong sales performance for larger family homes, with five plus bedroom properties selling 10% faster on average than last month,’ she explained.
‘This activity at the top end of the market is caused by ever increasing demand for a limited number of large family homes. This is being fuelled by access to affordable mortgage rates for those who have demonstrated they can handle them responsibly and are able to contribute their own capital,’ she added.
Regionally the West Midlands and London saw asking prices increase 0.8% month on month, Scotland saw asking prices up 0.6% and the North West, South West and East Midlands saw a 0.1% increase in asking prices.
At the other end of the spectrum, Wales and the North East saw asking prices fall by 0.2%. They were down 0.3% in Yorkshire and Humberside, down 0.7% in the South East and the East of England.