Transaction completions boost property market outside the capital

Transaction completions boost property market outside the capital

Completed sales transactions in the home buying market have seen an incredible 9% surge following the recent slowdown – but not in the regions you’d expect.

According to last month’s House Price Index for England and Wales from LSL, the residential property industry has witnessed the highest level of completed sales in seven years, at an estimated total of over 90,000. This is an encouraging sight for conveyancers, as this growth will lead to higher demand for services.

Property prices are reportedly up by 0.7%, equating to an average increase of £2,026 per property in just one month. This is said to be a direct result of high demand and has actually encouraged transactions beyond the London boroughs.

This level of demand has helped the industry gain momentum after having just a 0.3% price increase the previous month.

Home buying has now seen a 5% boost in the market annually (excluding London), with the average sale price now standing at £277,390. That said, in many of the most affluent London areas, there has reportedly been a slump in the market, with just a 0.4% price rise in September – the lowest increase within the capital in over a year.

Despite the surge in property prices, the third quarter of 2014 is said to have marked some of the greatest level of sale completions outside of London. The healthiest increase occurred in the West and East Midlands, regions of which saw a 22% surge with transactions breaking the 20,000 mark in both areas. This is compared to the capital city which saw a mere 3% rise in transaction completions reaching a total of just under 31,000 in Q3.

The highest amount of transaction completions were gained by the South West, says the report. The level of transactions secured by the region were more than a quarter of the national figure, with a total of 62,604 in a single quarter and up by 13.7% compared to 2013.

Experts are putting these positive completion levels down to heightened buyer activity earlier this year. Director of Reeds Rains and You Move, David Newnes commented:

"This increased level of house sale completions marks a considerable – though laborious – reflection of the increased buyer activity earlier in the year since the recession zapped the energy from the market. October saw the highest level of house sales completed in a month since November 2007. In part this was driven by a better throughput of sales that had sat in the pipeline for some time, finally coming through to completion."

 

Georgia Owen

Georgia is the Content Executive and will be your primary contact when submitting your latest news. While studying for an LLB at the University of Liverpool, Georgia gained experience working within retail, as well as social media management. She later went on to work for a local newspaper, before starting at Today’s Conveyancer.

Leave a Reply

Your email address will not be published. Required fields are marked *