21 Mar Estate agents see signs of improved property supply in the UK
A sharp rise in home owner equity in the UK is set to increase the property supply as even first time buyers in London seem undeterred by property price increases, it is claimed. Indeed, the latest data from haart estate agents shows that first time buyers in London reached a new annual high with registration up 55.3%.
This comes at a time when UK property prices have increased 7.9% annually to £191,375, while in London prices are up year on year by 23.6% to £474,359.
The firm also says that the national property market is buoyant with a 21.3% increase in property sales.
‘Home owners across the UK, who have on average accumulated equity of over £14,000 in their property over the past year, are expected to take advantage of their growing assets by remortgaging or downsizing this spring,’ said Paul Smith, chief executive officer of haart.
‘The downsizers will ease the current shortage of supply which will help to quell rising house prices. The increase in equity is now more than £90,000 annually in London. First time buyers are undeterred by property price rises and are now at their highest level in London over the past 12 months as banks continue to support lending to this group of buyers,’ he explained.
He also said that a lack of reform for the much criticised Stamp Duty property tax means the continuation of a dysfunctional housing market. ‘In one fell swoop the Chancellor George Osborne could have increased the supply of homes for sale and capped rising house prices helping every level of the housing ladder,’ Smith pointed out.
‘Instead he’s turned a blind eye and given nothing to the majority of home buyers and sellers rather than throwing them a lifebelt,’ he added.