Rental property market -How will the housing figures effect it?
Whilst the months of December and January were stagnant, February featured a surge in the numbers of buyers, who populated the housing market together with home owners looking to sell.
Such rise mirrored the figures reported by the latest Haart Housing Market Monitor, which highlighted an annual increase in buyers and sellers respectively by 10.9% and 10.7%.
As for property prices, no significant changes have been registered in the last five months. Although 2014 had registered a 6.8% increase to £204,355, prices have remained flat throughout the first quarter of 2015. Yet, when compared to the figures from February 2014 – which had registered a peak over £190.000 – 2015 average property price still features a positive difference of £14,000.
Whilst property sales have gone down by 7,8% monthly and 14,1% annually, Haart expects them to increase to a scale of 12:1 buyers per property, given the recent rise in the number of buyers. Moreover, a 2.2% fall in price of average starter home is currently benefiting first time buyers.
Although the average price of a starter home had been increasing regularly between August and November 2014, it reversed its pace this year. March 2015 saw 41.8% of all mortgages belonging to first time buyers.
Mortgages registrations by first time buyers and new buyers have been equally rising in London, where they increased by 7.7% and 7.6%, with a 12.5% monthly increase in new homes for sale.
As for rental property, investors are taking advantage of the more appealing mortgage rates and are now directed towards the growing prime property market in outer London. As argued by London estate agent Fraser & Co., properties in this specific sector are in fact more profitable compared to those within the prime central London real estate market.
Whilst in the past years the rental property market has been dominated by Asian buyers, an increase in domestic buyers’s interest has now been registered, towards properties in outer zones. Robert Fraser, managing director of Fraser & Co, said buyers will have the opportunity to capitalise on the greater returns on investments in such outer areas.
Overall, March 2015 saw steady house prices and solid stocks, mirroring a regularity in investor confidence, which reached its highest level in nine months. A further aid to the situation was brought by a decline of anxieties in regards to the Eurozone, which contributed to reassure investors.
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