Wed, 08 Nov 06
There are now on average nine homebuyers for every new instruction coming onto the market in the UK, according to a report from a joint venture property company report.
New research from CBRE Hamptons International, a joint venture between two big names in property, shows that there are now on average nine homebuyers for every new home coming onto the market in the UK.
The Q3 report from CBRE and Hamptons international finds that due to a 20% year-on-year fall in the number of new homes coming onto the market combined with a 44% increase in the number of buyers, the market remains significantly imbalanced.
The result of this disparity is good news for sellers.
Average residential property prices increased by just over 2% in the third quarter, which means more than £12,000 has been added to average property values so far this year. CBREHI now expects total house price growth of around 9% for 2006.
Jennet Siebrits, head of research for the group, said, “Continuing strong market activity and limited availability has led to further price increases in the third quarter. The recovery of the London market now seems well established, with above average price growth in each of the last three quarters.”
“However, Northern Ireland and Scotland yet again outperformed the other regions, both recording double digit house price growth.”
Property transactions in August reached the highest levels since November 1988. In total there were 486,000 transactions in the three months to August, a 16% increase in activity over the year.
With mortgage approvals remaining stable at around 120,000 for the last four months, CBREHI predicts strong activity to continue for the foreseeable future. In addition, the RICS report that the stock of unsold property in September was at its lowest for 2 years, whilst house price growth was the fastest since October 2002.
Siebrits added, “Changes in tenancy regulations and the introduction of buy-to-let mortgages have reversed the long-term decline in the private rental sector. Buy-to-let investors have been particularly active and now account for around a third of the market, with up to 8% of properties in new-build city centre developments.”
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