While there is a lot of focus on the supply of property in the housing market, there is rarely the same level of focus as to the level of buyer demand. In some ways, this is to be expected. After all, in the UK property market, there is a notable lack of supply of property, which is causing the market to struggle. It has long been said that until the supply of affordable and suitable housing improves in the UK, it is unlikely that matters will improve.
With this backdrop, it is easy to see why some observers don’t spend a lot of time focusing on buyer demand, because it is likely to outstrip supply by a considerable margin. However, several leading lenders believe that buyer demand for property is holding firm, and this is helping some major organisations in the property market to remain confident about the property market.
This comes on the heels of an announcement by the Mortgage Advice Bureau (MAB) Index, with the organisation stating that the UK property market is currently resilient. This may not be the term that people want to hear about the market, they would rather hear it was booming, flourishing or expanding but given many of the predictions, resilient is a term that a lot of industry specialists and observers will settle for.
The Head of Lending at MAB, Brian Murphy, released a statement, saying; “We would suggest that the UK property market is entering the second half of the year in a resilient climate. Growth, whilst modest in some parts, is still evident due to buyer demand and confidence in bricks and mortar would appear to be, for many consumers at least, unruffled by ongoing political debate.”
The resilience has been found in the rise in average property prices from May to June of this year. In May, the average property price was listed as £249,862 and in June, the average property price had increased to £251,573. Anyone looking to buy a home may not be too pleased to witness an increase in property prices, but rising prices are more likely to entice people to sell, which should be of benefit to buyers in the longer-term.
When you consider the increasing gap between asking prices and sales prices, it is understandable that many vendors have second thoughts about placing their homes on to the market. This has only made the lack of supply of houses to the market even worse so the fact that buyer demand remains in place should be considered as a positive aspect.
For those people with an interest in the average value of purchasing loans, there wasn’t a notable difference between May and June. In May, the average figure was £175,487 and in June, this figure had increased to £175,929.
With Halifax and Nationwide making similar comments with respect to the marketplace, there is an expectation that modest growth will continue throughout the rest of the year.
At Mitchells Estate Agents, we are local estate agents, focusing on Highcliffe, Mudeford, New Milton and surrounding areas. If you are looking to make a move in the property market, contact us and we will ensure you receive the best standard of support and guidance.
Before putting your home on the market be sure you are making an informed choice by arranging a FREE MARKETING APPRAISAL.