- Amount of stock increases by almost 6% across the UK and by 9% in London in May.
- Average amount first-time buyers pay for their deposit jumps up 7.7% on the year.
- Landlords are paying 13% more for their buy-to-let properties in London than the same time last year.
Paul Smith, CEO of haart, the UK’s largest independent estate agent, comments:
“On the cusp of the General Election the UK property market is showing signs of improvement. Stock of new homes for sale has increased by almost 6% across the UK and by a huge 9% on the month in London. And although it remains a tough market for first-time buyers who have seen their deposits rise again this month, we saw an 11% increase in new buyers looking to take their first step onto the ladder in May.
“It is clear that the impending General Election and the forthcoming Brexit negotiations are now not effecting the aspirations of home buyers.
“When the UK has a new Government in place on June 9th, we can expect the UK property market to experience a boost, benefiting from a rise in consumer confidence during the inevitable post-election political honeymoon.
“It is obvious that the desire for people to own their own home or move up the ladder is as strong as ever, evident through the fact that there are still 11 buyers chasing every instruction across the UK. We have every reason to be confident about the property market’s long-term prospects – but a greater emphasis from the next Government on helping aspiring home owners and increasing the amount of stock would certainly not go amiss.”
House prices across England and Wales in April fell by 0.2% on the month, and are down 3.2% on the year. The average house price now sits at £228,221.
New Buyer demand for homes rose by 0.2% on the month but is still down annually by 29.7%. Additionally the number of properties coming onto the market has risen by 5.7% on the month, however is down by 20.8% on the year. This month there are 11 buyers chasing every property across England and Wales.
The market has become more efficient this month, as the number of transactions has increased at a higher rate than the number of viewings. Meaning that buyers are choosing to look at fewer properties before they buy.
The average purchase price for first-time buyers has fallen on the month by 7.4%, however has not changed on the year. This comes as the number of first-time buyers entering the market has risen by a significant 10.9% on the month, however has fallen 30.7% on the year.
Despite average purchase prices rising, the average amount paid for a deposit remains relatively unchanged on the month, however is up 7.7% on the year.
The average property price in London has risen by 3.1% on the month, however is down by 0.8% on the year. London’s price rise was larger than the UK’s as a whole. The number of new buyers entering the market has fallen by 0.2% on the month, and by 27.6% on the year. At the same time, the number of new instructions has risen 9.2% on the month, however, is down by 24.1% on the month. Sale transactions are up by 9.2% on the month, however are down by 24.1% on the year.
The Lettings Market
The number of tenants entering the market has dropped this month, by 8.3% on the month, and 34.7% annually. Due to a drop in demand, rents have decreased by 1.6% on the month, as the average rent now sits at £1,268 across the UK. Demand in London has also fallen by 13.6% on the month, and by 34.8% on the year. Rents have fallen by 0.1%, and the average rental price now sits at £1,788 across London.
The number of landlords registering to buy has fallen this month, by 3.7% in England and wales, and by 9.6% in London. The annual fall is greater, 35.3% and 52.6% on the year respectively. The number of buy-to-let sales fell on the month by 7.0% in England and Wales, and by 4.2% in London. This comes as sale prices fell by 2.0% across England and Wales, but fell by 4.4% in London. However this is up by 0.1% on the year for England and Wales, and up 13.7% on the year in London.