As predicted, the market has been particularly buoyant this month, with sales transaction levels jumping up 20% since July when the World Cup and summer heat wave showed lower activity levels.
First time buyer levels are also up, reaching 29%, a record high in the past 12 months.
The housing market has been buoyant throughout August, as confidence remains strong, under the backdrop of continued household growth. Demand is high, having been repressed during the hottest July since records began and the World Cup, and the shortage of housing stock, particularly family homes, is also adding to the surge of activity.
Paul Smith, chief executive of haart comments: “August is commonly very quiet but we have seen this trend reversed this year. June and July were quieter, with the hot weather and World Cup distracting buyers and sellers from entering the housing market. However, the seasonal summer lull came to an abrupt end this month, with total sales transactions reaching a record high for August. Transaction levels are up 38% on this time last year and we see this boost in activity as the start of what we predict will be a very busy autumn.”
First time buyer levels are at their highest in 12 months for the second month running, having risen 1% in August to 29% of the market share as their confidence remains high.
Paul Smith continues: “Despite the rise in interest rates at the beginning of the month, the selection of competitive mortgage deals currently available means that first time buyers are still able to afford mortgage repayments. Confidence in their own financial security is high, under a backdrop of positive economic growth and high employment. There has also been an increase in the number of savvy first time buyers who are buying with their parents to give them a hand onto the first rung of the ladder. These high numbers of first time buyers are giving the housing market a much needed boost.”
The East of London saw the largest increase in price at 1.4% and one of the lowest percentage asking price discounts at 1.5%. The South West has the highest average price at £286,413 but sellers received an average reduction of 3.2% on their asking price, showing that buyers are still price sensitive and overpriced properties are not selling
