Headlines in the press and the TV are dominated by Brexit. I think it has become rather boring. Perhaps it would be a good idea to step back and take a view of the property market possibly the economy generally.
‘Although house prices have improved since the economic crash, the property transaction levels, which are a key indicator of the property market health, are yet to return to their peak levels in 2007’. This was quoted by Doug Crawford, CEO of My Home Move. Why is this an important factor?
Generally speaking, property transaction levels offer one of the most important measures of the overall health of the UK housing market, with transactions set to perform so strongly over the coming years. The signs are very positive for sellers and buyers looking to push through fast and pain free house sales. Where does this thinking come from?
A research project, bricks and mortar in a digital world: 15 years of the property market – with the forecast model founded on the historic relationship between property transactions and three variables, the variables being the ones that have the greatest impact on the property turnover. They are:
- Average mortgage rates
- Unemployment figures.
- Average first time buyer percentage deposit.
The number of housing transactions is expected to reach nearly £1.5m in 2020 if first time buyers are given a better access to higher loan to value lending.
This would mean that property transactions are likely to increase by over a fifth (20%) in 5 years according to a new report commissioned my conveyancing firm My Home Move. In 2015 the property transactions figure was £1.23m.
We and other people think that there is merit in providing availability for more lending to those buyers who have smaller deposits. We think it would be beneficial to find that many first time buyers are able to enter the market with a 10% deposit.
We carefully watch these indicators and try to give to both our buyers and sellers a clear picture of the future prospects of the property market. We provide a wide range of services from our branch network, across South Buckinghamshire and Oxfordshire, eight sales offices and our lettings operation. We have an excellent local knowledge and coverage and we are supported by mortgage advisers who can help and give advice independently to buyers that would like to discuss a mortgage for their own home.
Please call Tim Russ & Company if you would like any help and advice with your search – sale, or mortgage.