First time buyers have boosted annual growth in the UK’s housing market activity despite a seasonally quiet month of July, according to the latest research from chartered surveyors.
The total number of valuations carried out in July 2014 is 14% higher than in July 2013, according to the latest monthly report from Connells Survey & Valuation.
This is despite a seasonal slowdown of 21% compared to June and in line with an average 22% dip between each June and July since 2007.
Annual increases are led by first time buyer activity which is up 23% since July 2013, and with first time buyers showing the smallest seasonal drop off, at 17% from June to July.
According to John Bagshaw, corporate services director of Connells Survey & Valuation, a motoring economy is bringing with it renewed consumer confidence and emphasis on first time buyers from lenders, partly due to government schemes, appears to be getting people on to the property ladder.
‘We’re not on an open road to prosperity yet. After the summer slowdown, there will be more clarification on the long term impact of various potential speed bumps. The limiter could be interest rate rises or the fundamental squeeze on affordability for many would be buyers. But with consistent double digit annual growth in activity, there is now a growing sense that the housing market is running more smoothly,’ he explained.
‘Buy to let activity often sees sharper seasonal dips than the rest of the market. Particularly over the summer, landlords are starting to concentrate on the upcoming busiest time of year for new lettings, rather than buying or selling properties. However, as annual increases attest, buy to let investors are taking advantage of the capital gains they have garnered and are still growing their portfolios on average,’ added Bagshaw.
Source: www.propertywire.com
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