At the beginning of the year the property industry delivered its forecast for the housing market, and most of them underestimated the strength of growth. The strengthening housing market has resulted in surveyors now predicting much faster growth than previously expected that is sustainable.
The sun is shining and there is definitely a sharp rise in the number of people actively looking to buy a home. “Consumer sentiment is rapidly improving, according to the National Association of Estate Agents” (NAEA).
Mark Hayward, managing director of NAEA said: “Our figures show positive movement in the housing market, with consecutive monthly increases in house hunters, sales and supply.
“Lower lending rates combined with a host of Government backed schemes and a wider variety of mortgage products has helped push the market in the right direction. It is also pleasing to see the jump in numbers of first time buyers purchasing homes as they take advantage of the low rates and help.”
“The strong house sale numbers should be encouraging for potential home sellers who may have been biding their time due to previously fluctuating market conditions.”
Peter Bolton King, RICS global residential director, said: “After what has seemed like a very long wait, we are finally starting to see what looks like the beginning of a recovery in the housing market.
RICS members expect prices to go up 1.5 per cent in 2013 compared to a prediction for static values at the beginning of the year. They also expect a four per cent a year average increase in property values over the next five years. The jump in prices last month was mainly fuelled by surging numbers of prospective buyers returning to the market, according to RICS. Demand from prospective buyers has now risen month-on-month since January and is currently showing its fastest rate of growth since August 2009.
Other housing indices also show positive house price growth. Halifax research showed house prices have rocketed almost £9,000 in just eight months. Recent HMRC figures show that home sales are the highest in any month since March 2012 while Hometrack says prices rose at their strongest rate in almost six years last month rising across almost a third of the country. According to the Royal Institution of Chartered Surveyors (RICS), house prices in the UK have risen to their highest level in more than three years, with an improved economy helping to boost the number of transactions. Nationwide said house prices rose 1.9 per cent in June compared to a year earlier – pushing the average UK price to £168,941. The Council of Mortgage Lenders (CML) further backed up suggestions of a resurgence by reporting continued rises in gross mortgage lending. With the number of first-time buyers rising to its highest level since 2007 in May after banks and building societies became more willing to offer loans to borrowers with small deposits.