It has been a turbulent ride for the housing market through the spring and summer of this year, following the changes to Stamp Duty for second homes and the Brexit. However according to Rics, the Royal Institute of Chartered Surveyors, house prices will start to rise again in the coming months and over the next year due to strong lending.
Mortgage lending to first time buyers was up by 11% in August - with first time buyers borrowing £5.1bn, an augmentation of 13% compared to last July and 24% in August, which represented 31,800 loans, an increase of 12% month on month and 19% year on year. People who moved home borrowed £7.1bn, an increase of 15% for the month of July. 1
Rics Chief economist stated: “Buyers do appear to be returning, albeit relatively slowly, but the big issue that continues to be highlighted by respondents is the lack of fresh stock on the market."
"Although this is not a new story, it is a significant one, having ramifications for both prices and the level of turnover."
Halifax’s latest index has shown that the Brexit has had a negative effect on the housing market, however Rics believes that the lack of housing stock in the market will continue to drive up prices over the next year. The only exception seems to be London where prices are expected to fall as the trend to move out of the City continues.
If you would like to find out more information about property market or are thinking of buying a property, why not pop into your local branch of Intercounty for a chat and a coffee, or call us on 01279 655248.