Although the housing market appears to be on a bit of a roller coaster ride lately, there are some areas where the property market is booming.
Latest figures from the RICS show that in July, estate agents were reporting falling prices, whilst in June the opposite was true.
The most buoyant property market is currently the North West of England. Carter Jonas say the market is relatively healthy in the south Lake District and a Cheshire estate agent remarked that enquiries were starting to come in from BBC employees who are being relocated from the South East. The South West also witnessed rising prices last month, albeit at a more modest rate.
Estate agents in the rest of the country, except London, seem generally pessimistic. One remarked that the abolition of HIPS caused more properties to come onto the market but the number of buyers did not increase. This increased supply has meant sellers must decrease their prices.
Other estate agents are saying the government’s austerity cuts are to blame for the general lack of confidence in the housing market.
Meanwhile, first time buyers are making a comeback according to the CML. 20% more mortgages were issued to first time buyers in June compared to the previous month. In the 2nd quarter of 2010, a total of 52,200 loans were advanced to new entrants to the property market; 5.6% more than in Q1.
Fixed rate loans are fast becoming the most popular contractor mortgage amongst new borrowers. Almost 50% of June’s first time buyers took advantage of their historically low interest rates.
Despite their increased numbers, the Nationwide says first time buyers face the worst conditions in a quarter of a century. A typical starter home costs £142,457, nearly five times the average salary and deposits are also at their highest for 25 years.
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Image: 27th April 2008 / Day 118 by Mrs Magic
