Liquid error: wrong number of arguments (2 for 1) UK housing supply to see spring bounce | Marsh & Parsons Sales and Lettings Estate Agents London

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UK housing supply to see spring bounce

Wed 26 Mar 2014

UK housing supply to see spring bounce

The latest report from haart estate agent notes that with UK house prices climbing 7.9 per cent in the last 21 months to 191,375 - and by an even higher 23.6 per cent in London to 474,359 - more confident homeowners with higher equity are expected to remortgage their homes or downsize to smaller properties, bringing a wave of new stock onto the market.

Indeed, the housing crisis in the country has been the key culprit in rising house prices, as the market fails to satisfy the demand unleashed by the government's Help to Buy scheme. As first time buyers enjoy improved mortgage accessibility, making up 46.4 per cent of all mortgages written, the need to build houses is higher than ever. A increase in properties listed for sale, though, could provide short-term relief.

Paul Smith, CEO of haart, comments: Home owners across the UK, who have on average accumulated equity of over 14,000 in their property over the past year, are expected to take advantage of their growing assets by remortgaging or downsizing this spring. The downsizers will ease the current shortage of supply which will help to quell rising house prices. "The increase in equity is now more than 90,000 annually in London. The UK market is buoyant with property sales up by 21.3% and new buyer registration up 32.3%. First time buyers are undeterred by property price rises and are now at their highest level in London over the past 12 months as banks continue to support lending to this group of buyers."

The forecast follows the 2014 Budget, which was met with angry responses from agents when Chancellor George Osborne ignored calls to change the Stamp Duty thresholds, which would have helped to support the market recovery. The Chancellors deaf ear to the myriad of calls from industry to reform Stamp Duty in the Budget is at best disappointing and at worst will perpetuate a dysfunctional housing market," added Paul Smith. "In one fell swoop he could have increased the supply of homes for sale and capped rising house prices helping every level of the housing ladder."

UK property sales up more than 30pc

UK property sales have risen by more than 30 per cent in the last 12 months, according to HMRC. The latest figures show that 108,940 residential and 9,120 non-residential transactions were completed in February 2014, 3.5 per cent higher than January 2014 and 31.7 per cent higher than the same month in 2013.

Peter Rollings, CEO at Marsh & Parsons, comments: With sales volumes in February up by nearly a third year-on-year, the momentum of economic growth continues to lift the UK property market and shows little sign of abating. Despite theintroduction of 15% stamp duty for companies purchasing properties worth over 500,000, by extending the Help to Buy scheme for new build properties in Wednesdays budget, the Government seems intent on oiling the cogs of the housing market, facilitating property transactions at all rungs of the ladder.

Prime London continues to be a strong sellers market, as the limited supply of housing stock struggles to keep pace with the influx of buyers competing for the best properties. Despite Osbornes budget for savers, Prime London property continues to be a highly desirable investment opportunity, which is helping to stoke demand. We witnessed one of our busiest starts to the year ever in January, with many properties being sold in record time, for the full asking price or above. As we gear up for the even busier spring season, we can typically expect more properties to become available, helping to relieve some of the pressure and normalising market conditions.

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