What’s happening in the UK property market?
House prices soared in March as many looked to avoid an increased stamp duty tax for second homes. We saw an 80% surge in the amount of property transactions and a record breaking average UK property price that topped the £300,000 mark.
Nearly two months later where does the property market stand now?
As we approach the half way mark for the year, UK property prices have seen a modest increase of 0.4% (+£1,118) in May up from April, which means another new record. This takes the average UK house price to £308,151. On analysis, this equates to a year on year increase of 7.5% and a jump of £19,500 so far in 2016.
In the North-West, Rightmove reports that the average house price for May 2016 is £179,490. This is holding steady from April’s figures down only 0.2%, although up 3.2% from this time last year.
One of the most interesting figures to come out this month was the price of houses with two bedrooms or fewer. The UK average 0.4% increase masks a price rise of 6.2% for the typical first-time buyer property. This reflects the highest monthly rise recorded for this property type since February 2012.
So, what does this mean for the property market?
Well, what this tells us is that motivation to get on to the housing ladder is still very much there and is being encouraged by better availability of mortgage products as well as deposits gifted by family. Searches on Rightmove for two bedrooms or less was up 47% in April this year compared to April 2015. From a seller’s point of view, there have been consistent levels of rising house prices recently and the highest prices since 2008. This can only be good news for anyone considering selling.
Fallowfield Branch Manager Steven Curley commented, “In the last few months we have seen an increase in potential buyers registering, looking to buy homes in the local area. This can be attributed to a few factors in the current market that are helping more and more people to purchase homes, factors such as the reappearance of 100% mortgages, fixed low interest rates on offer and the help-to-buy scheme.”
At homes4u we are here to help make the home buying process easier. Our dedicated sales advisors have the expertise to guide you through every aspect of the moving home journey.