The UK market is seeing an influx of properties, yet prices are still remaining strong, indicating robust demand and restored consumer confidence. Recovering real estate prices, combined with the prospect of a Capital Gains Tax hike and an end to Home Information Packs, motivated many sellers while buyers are also finding easier access to lending. See the following article from Property Wire for more on this.
The number of properties for sale in the UK has reached its highest level since January 2008, up 145%, according to research.
Stock increased 9% after the general election between May and June and is now 35% higher than in January 2010. Despite the rise in stock, the average UK asking price rose 0.3% in June, according to a report from FindaProperty.com.
The figures from its latest index show that the average home is now priced at £220,308, the highest for 11 months and rising supply coupled with rising prices suggest strong buyer demand.
Recovering prices, the scrapping of Home Information Packs and worries over changes to Capital Gains Tax have convinced would be sellers to market their properties. On an annual basis prices are nearly 2% higher than in June 2009.
The rise in both prices and stock levels can be attributed to demand outstripping the increased number of properties for sale. Lenders are now offering mortgages with far more relaxed lending criteria than in previous months and buyers are more confident about entering the market. This increased demand has helped push average prices up.
All Regions except the East of England have seen stable or rising prices, the index also shows. Despite having the largest rise in average prices in May, the East of England was the only region in the UK to record falling prices in June where they were down 0.5%. The largest price rise was in Wales, up 0.7% where average prices are now standing at £171,772.
‘We’ve seen a flood of sales properties come onto the market this month. And that is in no small part due to the scrapping of HIPs according to our findings, in addition to rising prices since the start of the year,’ said Nigel Lewis, property analyst at FindaProperty.com .
‘Demand for property has helped prices stay strong despite the explosion in the number of homes for sale and this fifth month of rises means asking prices are now higher than at any point since July 2008. But with Government austerity measures due to be imposed in the near future it is unlikely that prices will rocket out of control,’ he added.
This article has been republished from Property Wire. You can also view this article at Property Wire, an international real estate news site.