Buyers and sellers have sprung into action after Easter, with the number of sales agreed in May the highest in four years, according to according to Zoopla’s latest House Price Index.
Most sellers are also buyers who are seizing the opportunity to agree purchases, enticed by some attractive mortgage deals and the ability to borrow up to 20% more, the report added.
Increased market activity is enabling households to meet their moving ambitions, although it is not resulting in faster price rises, which average 1.6% over the last year.
Busiest May for home sales since the 2021 pandemic boom – Property Industry Eye
Industry reactions:
Matt Thompson, head of sales at Chestertons, commented: “Some house hunters paused their search amid the Easter holidays but were quick to resume their activity in May. Buyer motivation was further boosted by the Bank of England’s decision to cut interest rates to 4.25% which even led to more first-time buyers entering the market. Sellers remained motivated throughout the month, resulting in a larger number of properties available for sale. As the majority of vendors have been eager to move themselves, there has been a stark uplift in agreed sales in May and as buyer demand remains strong, we also expect a busier than usual summer market.”
Tom Bill, head of UK residential research at Knight Frank, said: “Buyers can see there is a healthy supply of property on the market this spring, which means they have become choosier. Stamp duty has also become more expensive since April, especially for second homes, which has increased the mood of hesitation. Together with a sense that economic pressures may increase this year, it means asking prices will need to be particularly realistic to attract interest.”
Martin Bennett, the owner of Crown Estates and Lettings Agents, remarked: “Business is booming in Blackburn, with increased demand for properties both at the lower and top end of the market. This is being reflected in house prices, with an entry-level property in Blackburn having an average asking price of approximately £75,000 compared to approximately £50,000 two years ago.
“From my experience, properties that are priced correctly are going under offer within two weeks of being listed, while it’s not uncommon to have ten-plus potential buyers on the first day of viewings.”
Toby Leek, NAEA Propertymark president, added: “Even during a time of economic turbulence, it is encouraging to see that the housing market is the busiest it has been since May 2021, and that house price inflation remains stable. This news demonstrates that there is still an appetite for housing as inflation in general continues to impact the wider economy. However, with the North West becoming the UK’s most popular housing market, it shows that more work needs to be done to even out house prices throughout the country so that people living in certain regions do not get priced out of the local housing markets there. It is vital that government policies across the UK are geared towards that aim.”
Read the orginal article: https://propertyindustryeye.com/property-industry-reacts-to-zoopla-house-price-index-14/
