Housing Market Hits Four Year High12/12/2013
According to the RICS UK Residential Market Survey in September, the housing market has hit a four year high as the housing market recovery continues to assemble pace.
October’s survey reported that house prices had jumped yet once again as interest from would-be buyers over shadowed the amount of properties coming onto the market.
Price rises hit an eleven year high and have risen to 57%. This is the highest reading since June 2002 and demonstrates the impact of the imbalance between supply and demand and what effect it is having on the market. Surveyors across the country take note while Help to Buy is boosting buyer numbers.
While Help to Buy are expanding the net of those now in the position to purchase a home and the loan to value rates on offer continues to rise, demand for rented accommodation is rising.
As the market is continuing to grow across the UK, the number of homes sold also saw a big jump last month. Recently chartered surveyors sold an average of 20.3 homes. This is the highest number since February 2008. Almost every region of the country saw transaction levels increase. This further demonstrates that recovery is spreading beyond London and the South East.
“Looking ahead, respondents are optimistic that the currently flourishing market is set to continue, with expectations for both future prices and future transaction numbers predicted to increase over the coming three months.
It’s no secret the housing market is gathering some momentum and that buyer numbers are on the rise right across the country. A greater willingness by lenders to increase loan to values on mortgage products allied to the Help to Buy scheme has meant that more and more first time buyers are in a position to enter the market. In spite of this, the amount of homes currently up for sale is still nowhere near enough to keep up with demand and – in order for the market to function correctly – this imbalance urgently needs to be addressed.
House building starts have picked up recently but we are still well behind in terms of the amount of properties needed. If we are to create a more sustainable market, it is critical that many more good quality homes are built in areas where people want to live.” – Simon Rubinsohn, RICS Chief Economist