holiday period is over, the suntan is fading and the kids are back at school. We’ve enjoyed one of the hottest summers on record but it’s not only been the UK weather that has heated up over the past few months. The property market is never far from the headlines in the UK. Every blip, dip and twitch is analysed to death. But for a change, the media are actually being positive, with constant reminders of increases in house prices, increases in mortgage lending and forecasting further growth over the next few years.
The market is in better shape than before the financial crisis
And right now we’re in “growth” mode. Property
analyst Hometrack said last week that marked improvements across all key
indicators in August mean the sector is now in its best shape since before the
Rightmove have reported a 13.8% year-on-year hike on the average
property asking price in Ealing, while Bank of England data showed mortgage
approvals for house purchases hit their highest level since the financial
With mortgage market conditions set to remain favourable and the
economy showing further signs of life, the resulting uplift in consumer
confidence continues to revitalise the housing market.
House prices are not the most important figures in the market now
But the focus on prices is perhaps wrong. Because it’s the actual number
of people moving home that might matter most to the rest of the economy.
Why? Because selling your house and buying another isn’t just a sign of
confidence in your own financial future, as well as the bank’s confidence in
you, it kick starts a whole chain of other purchases.
A new house nearly always means new furnishings – whether you’re trading up to
make room for new additions to the family, re-locating for work or other
reasons, or even downsizing and discovering your old furniture no longer fits.
And that’s not counting the money spent on paints, carpets, renovations to the
new home or changes to the garden to make it suit your tastes.
Britain’s recent housing market revival has helped retailers enjoy their best
sales growth for six months in August amid a surge in demand for home wares,
according to BDO’s monthly high street tracker.
First-time buyers are surging back onto the market
First-time buyers accounted
for more than half of all house purchase loans taken out in London in the
second quarter of this year, new data show. Lenders advanced 11,200 mortgages to first-time buyers in the three months to June,
the largest quarterly number since the end of 2007, according to the Council of
What that means for the lettings market
Many of these first
time buyers have been renting and their move into buying is seeing rental
values stabilise as supply and demand become more equal. The rental market
remains strong but landlords are, as we have been suggesting they should for
some time, paying more attention to the quality of tenant and length of tenancy
rather than just the last pound or two of rent.
The rental market is
moving quickly and tenants are having to make an offer quickly when they see a
property they like. Good properties are
being snapped up and as ever, the properties that are best presented are
letting most quickly. However, we’re regularly receiving plenty of new instructions,
so we currently have good stock levels.
Autumn is the time to get a move on
I believe that the
autumn period will prove to be a very strong one for the market with many
people who have been holding off moving in recent years seeing the opportunity
to do so now.
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thinking of buying, selling, letting or renting. Just call us on 020 8840 6666
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details on properties, mortgages and conveyancing.