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18 September 2015

King West

Market Thought by Stephen King

Reading the news headlines of the past week, those looking to sell their home will be buoyed to read that house prices could rise even faster than the 6% previously forecast. Industry research reveals that accelerated demand for houses is hitting a barrier of short supply throughout the country.

Average house prices were predicted to rise by 6% during this year, although at the end of last week the Royal Institution of Chartered Surveyors (RICS) reported that their updated prediction was that by the close of 2015 that figure will be higher.

With consumer confidence high, unemployment at almost the lowest level on record and mortgage rates at rock bottom, the property market is being stimulated to a level of intense demand for high quality, sensibly priced properties. With the shortage of these properties being brought to the market over the summer months, stock is low placing further pressure on the nation’s property values. 

The RICS also reported that buyer enquiries climbed for the fifth month in a row in August, traditionally a quiet time, with almost 70,000-property purchase approvals, 9.3% more than the same month last year. The accompanying 18-month high lending level for house purchases has additionally been sparked by record low borrowing costs, low Bank of England interest rates, fierce competition between high street lenders and the average fixed mortgage interest rate edging down to 2.83% in the three months to June 2015 

Prospects of a revival in supply in the near future were recently quashed as a report claimed that 39% of surveyors had been asked to value fewer properties in August than in previous years. With market evidence and expert opinion all pointing in the same direction, a robust market is expected this autumn for those wishing to sell their homes.

An exciting time ahead as we at King West look forward to those who have recently decided to sell, making the most of these market conditions.  

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