Market Remains Stable With Marginal Q2 Property Exchange Growth
Property exchange volumes increased by 6% year on year, rising to 992,000.
According to the Property Homemover Report Q2 2019, collated by TwentyCi, the market has responded fairly positively to the current political difficulties in the UK.
Property Instructions and new property entering the market increased marginally by 2% which suggests sellers are determined to move despite implications and speed bumps presented by Brexit.
The report further claims that a rise in instructions and greater volumes of exchanged properties is leading to more UK sellers achieving their asking price.
In particular, the Help to Buy market has enjoyed solid growth in the second quarter of 2019 with sale increases in three of the four targeted income bands.
Positively, lower income buyers have been able to grasp a foothold on the property ladder through Help to Buy. There was a 22% increase in the number of households earning less than £19.9k per year exchanging in second quarter of 2019.
Similarly, 18% more home buyers with household incomes between £30k and £39.9k bought using Help to Buy in the last quarter.
The Government backed scheme has been criticised for helping wealthy homeowners buy more expensive homes. Over a quarter more (26%) higher income earners, those earning in excess of £150k per year, bought using Help to Buy.
The only income bracket struggling to acquire property in the second quarter of 2019 was the squeezed middle earners taking home between £50k and £59.9k per year. Here, Help to Buy property sales fell by 11%.
Overall homes valued under £300,000 experienced the most exchanges in the second quarter of the year. Exchange growth year on year increased between 8% and 14% for properties within this price bracket.
Prime property also enjoyed significant growth in the second quarter of 2019 with exchanges with properties valued between £1 million and £2 million growing by 9% and properties over £5 million growing by 7%.
Colin Bradshaw, Chief Customer Officer of TwentyCi, commented:
“It’s worth keeping in mind that consistent to our previous reporting, the current political climate has brought about an overall slower moving market; one which requires careful monitoring over the next few months. The overall picture is encouraging however, with signs of growth maintained for the three months to the end of June. Consumer confidence may yet to have fully made a return but there are indications of recovery.”
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