Mortgage News
House sales rise 1.5% in August
Housing transactions in England and Wales increased 1.5% in August to 64,500, bucking the traditional seasonal fall, according to LSL Property Services and Acadametrics.
Their joint report revealed that for the three months to July, transactions increased 23% compared to the previous quarter, just 1% off the 15-year average for quarterly transactions.
However, this was 6.8% down on Q2 last year and remains 40% below the long-term average.
In addition, sales according to property type have all fallen, with flat sales down 15% in Q2 and terraced property sales dropping 4%.
Flat sales have fared much worse since 2007 than detached property sales, as the first-time buyer market has slowed significantly. Flat sales have fallen almost twice as much as detached sales since 2007 and are 80% off their peak levels, LSL said.
The research showed house prices rose by a modest 0.3% in August to an average of £219,078, but on an annual basis fell for the fourth consecutive month, down 2.2%.
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Acadametrics highlighted that the national monthly increase masked significant differences in regional price movements, with average prices buoyed by a 1.6% increase in London driven by cash buyers.
Average property prices remain 5.5% or £12,751 below the peak of £231,828 recorded in February 2008.
Greater London was the only region where prices on an annual basis remain positive and Acadametrics said that, with the relatively strong growth in August, it was possible prices in the capital as a whole had stopped falling and moved into recovery.
Dr Peter Williams, chairman of Acadametrics, said: “Investors have returned to the market quite strongly in recent months reflecting in part the increase in credit supply; the question now is whether owner-occupiers will do the same?
“We would not suggest anything other than a slow recovery and it is quite clear that lenders will remain cautious, not least whilst debates continue as to the capital which they must hold and is available for their access.”
He added: “Much now turns on the overall state of the economy, but we should not understate the importance of the housing sector itself – a modest recovery there can contribute substantially to wider economic upturn.”