The second half of 2014 is seeing a switch from a seller’s to a buyer’s market in the UK as a healthy supply returns, according to the latest market report.
Overall the number of new homes coming to the market has increased 7.3% annually across the UK while the volume of new buyers coming to market is down 2.8%, says the report from independent agents haart.
It also shows that there are 9.5 buyers chase every property for sale across the UK, down from 14.4 in January 2014.
National property prices remain robust, increasing 8.1% annually to £204,216, the highest average price over the last two years. Prices were up 0.1% in July compared with June.
But London has seen even more pronounced growth with prices up 18.6% compared with a year ago, although this growth has fallen to 0% in July.
Also, the switch to buyer’s market is more pronounced in London as new buyers are down 15.7% but property supply has soared by 32.3%.
The monthly report also shows that property sales are healthy, up 9.8% annually and up 7.7% month on month.
‘The second half of 2014 marks a shift in favour of buyers as healthy volumes of stock return to the market. Many home owners are adopting a now or never attitude to take advantage of the continuing strength of the market having seen their equity rocket over the last year at a time when mortgage deals with decent loan to values are still available. Interest rates are to remain at historic lows until the start of 2015 at least and this is helping wider confidence,’ said Paul Smith, chief executive officer of haart.
‘At the start of this year demand for homes was growing at a far greater rate than property supply but this trend has flipped and stock is coming to the market in healthy levels, up 7% annually, yet demand has fallen by almost 3% in the same period. There are now around 10 buyers chasing every property for sale, down from 14 at the start of this year. So the market is still competitive, but buyers now have more choice,’ he explained.
‘As positive market sentiment continues this year, and people return from their summer sojourns, we fully expect a busy autumn with a higher volume of sales transactions,’ he added.
*Source PropertyWire