House Price Rise Leads to More for Sale
At the end of 2014, the amount of houses put on the market rose by almost a third as their owners pursued the lucrative rewards offered up by the almost record price rise for property in the UK. However, with the number of possible customersí not keeping chase with the property price rise, those people that are in the market for a new home can benefit from less competition.
The figures are startling, with the overall number of houses that were put up for sale in the final quarter of 2014 reaching 187,905. This is compared to the 147,852 that were entered in the last three months of 2013, meaning the market saw a 27% increase. These numbers were supplied by the credit checking organization, ìExperianî.
The property manager for Holdens Property Services, Hannah Assibey who is based in Essex, commented: ìBased on our own figures here at Holdens, we have seen a 20% rise in the number of properties put up for sale at the end of 2014 as compared with the figures of the same period in 2013.î
She went on to give an explanation of the trend, stating: ìWe believe this to be due to strong confidence in the market and also seeing high levels of transactions with properties normally going under offer within the first four weeks of being put on the market. The governmentís recent stamp duty change has also had an effect on these figures in a positive way.î
However, it should be noted that due to George Osborneís stamp duty reforms, along with the aforementioned rising house prices and more stringent mortgage loan regulations, the typical deposit to buy a home has reached its highest since October 2013.
The Office for National Statistics informed the public last week that the overall increase in the average UK household for 2014 was the highest since 1980, excluding the record breaking year of 1988. Despite not being able to offer data at present on prices in December, the Office for National Statistics notified that the average UK home stood at £271,000 in November, which was one tenth higher than at the same instance the year before.
The sales director Robert Clarke, who fronts a big estate agency in the North West of England, Rowcliffes, stated: ìWe definitely saw an increase in the number of properties listed in 2014 compared with 2013. This has been a trend across the industry, with more people looking to take advantage of the changes to stamp duty and the fixed-rate mortgages that are flooding the market at the moment.î
However, he seemed to disagree with the overall trend shown in the final months of 2014, stating that they saw a ìÖbig slowdown in the market at the very end of the year.î
Further to this, it should be noted that greatest acceleration was in the amount of homes that were put up for sale above £500,000, this category growing by 57% across the year, with those properties falling between £250,000-£500,000 escalating by a smaller 38%.
Find a suitable mortgage which meets your needs and requirements with MoneyExpert.