24 July 2009
There has been a continued increase in the number of properties being sold in the UK according to recently released figures from HM Revenue and Customs.
Officials from HMRC said that May saw a rise of 7 percent in the level of property sales over the value of £40,000, with around 62,000 homes over this value being sold over the course of the month. This was the highest figure since October of last year, but is still considerably lower than during the same period last year.
The data backs up the various reports that have suggested the level of interest from buyers in the housing market was increasing following a long and deep slump in the property market.
However, whilst some officials believe that the increase in property sales could mean an end to the slump in the property market others are convinced that it is just the usual ’spring bounce’ and that the figures will drop again as the weeks go on.
One industry official stated: “At this time of year it is usual to see an increase in property sales, as spring is the time when many potential buyers decide to start looking around, applying for mortgages, and buying a new home. However, the numbers have probably been boosted as a result of the lower base rate, which will have encouraged some people to take the plunge sooner rather than later, and by the lower house prices compared to a couple of years ago.”
One of the factors that has hindered the level of new property sales is the fact that mortgage lending is still tight, not only in terms of lenders handing out mortgage loans but also in terms of the amount of deposit that many lenders have been demanding, which for many buyers – particularly first time buyers – simply is not achievable.
Tags: property sales, housing market
I am glad to see the UK property market returning to health. I suspect the stimulated market has somethign to do with people grabbing a bargain they could not afford last year.