Buyers are flooding into the market, says Sequence

Buyers are “flooding” into the market, pushing up prices while supply falls far short, according to Sequence, part of Connells.

A similar picture emerges from the latest lending statistics which show that mortgage approvals fell back slightly in October, although the average approval value rose.

There were 42,808 approvals for house purchase, down from 43,182 in September – although 33% up year on year.

However, the average mortgage approved in October was for £156,400, up from £151,700 in September.

The figures are from the British Bankers Association.

According to Sequence, the average house price in October hit £209,923, up 11%  on a year ago and up 3% in a month.

London house prices hit a new record of £404,199, up 10% on October 2012 and up 4% in a month. It is the first time that Barnard Marcus – Sequence’s London brand – has seen average prices break through the £400,000 mark.

Although Barnard Marcus has had a 17% rise in the number of new instructions over the last year, this has been accompanied by a 68% rise in the number of new applicants registering.

Sales transactions were also up across the UK by 33% annually to stand at a three-year high. London’s sales transactions were up 57% annually.

Sequence chief executive David Plumtree said: “The appetite to buy property across the UK has risen to record levels, with almost seven new buyers for every new property coming on to the market.

“This has impacted on property prices as competition for every new instruction intensifies.
 
“In spite of rising prices, there has been a surge in mortgage applications across the board, demonstrating that buyers are still willing and able to buy.

“Increasingly attractive mortgage rates and incentives such as Help to Buy are fuelling the drive in demand, and as long as this continues we can expect to continue to see prices rising.”