UK property buyers are becoming more efficient, according to the most recent research from haart estate agents.
Buyers are allegedly looking at fewer properties before deciding to make an offer. However, it is still tough for first-time buyers, with the average deposit they are required to pay increasing by 7.7% in the last year.
Changing Market
This certainly suggests a changing housing market. Supply has risen by nearly 6% across the country and by 9% in London. Despite this rise, supply is still down by 20.8% in comparison to one year ago.
In addition, the data indicates that property prices in England and Wales slipped by 0.2% month-on-month and by 3.2% year-on-year. This took the average price of a property to £228,221.
The average price paid by a first-time buyer was £168,619.
Overall, new buyer demand rose by 0.2%, but has fallen by 29.7% year-on-year. Despite this, there are still 11 buyers after each property in England and Wales.
Tenant Falls
Analysis from the report also shows that the number of tenants coming onto the market fell in May by 8.3%. There was a more substantial decline of 34.7% year-on-year.
Rents rose by 1.6% month-on-month, taking the average rent to £1,268.
UK buyers are becoming more efficient
What’s more, the number of landlords registering to buy is also down, falling by 3.7% in England and Wales and by 9.6% in London. Worryingly, these figures rose to 35.3% 52.6% year-on-year respectively.
The number of buy-to-let sales dropped by 7% month-on-month and Wales and by 4.2% in London.
Improvement?
Paul Smith, haart chief executive officer, noted: ‘The UK property market is showing signs of improvement. Stock of new homes for sale has increased by almost 6% across the UK and by a huge 9% on the month in London. And although it remains a tough market for first time buyers who have seen their deposits rise again this month, we saw an 11% increase in new buyers looking to take their first step onto the ladder in May.’[1]
Smith is tipping a boost following the General Election, stating: ‘It is obvious that the desire for people to own their own home or move up the ladder is as strong as ever. We have every reason to be confident about the property market’s long term prospects but a greater emphasis from the next Government on helping aspiring home owners and increasing the amount of stock would certainly not go amiss.’[1]
[1] http://www.propertywire.com/news/uk/research-suggests-uk-buyers-becoming-efficient-discerning/