Market confidence increases
According to the latest National Housing Market Monitor from haart confidence has returned. However, the housing market is constrained by a shortage in supply.
Whilst total new buyers have increased by 27.9% annually, new properties for sale have decreased 4.4%, constraining actual sales to a 3.5% annual increase.
A large percentage of these were first time buyers with a 76.2% increase in first time buyer numbers.
In London this figure was up at over 100%. UK property prices are up 3% annually, and 1.4% over the last month.
Paul Smith, CEO of haart, said: “Bank of England Governor Mark Carney’s recent promise to keep interest rates at 0.5% until unemployment drops to 7% – drawing on the US and Canadian models – is fantastic news for the property market.
“It heralds increased stability over the coming years with lenders able to offer attractive locked in deals.”