Help to Buy fuelled an immediate 92% annual rise in the number of new buyer inquiries – but supply limped downwards.
According to Spicerhaart, there was a huge surge in applicants in the first week of October, following the announcement of the early launch of the second phase of Help to Buy.
Most inquiries (74%) were from first-time buyers.
However, property supply was down 1.7% on the month.
Paul Smith, CEO of the agency chain, said: “October was an unprecedented month for us with the volume of buyer enquiries up a staggering 92% in the first week of October compared to the same week in 2012.
“However, we are currently seeing only around 35% of our valuations coming to market, when previously this was around 50%.
“Our message to potential sellers is sell, sell, sell as we just can’t get enough stock.
“Demand for first homes, in particular, is overwhelming and the supply is still extremely limited, which is why the average price of such properties is up 6.1% annually.
“There is no doubt that the catalyst for this was the advanced launch of Help to Buy’s second phase.”
* Average UK house prices rose to £209,923 last month, up 3% on the month before and 11% annually, according to Sequence.
Transactions increased by 4%, up 33% on October last year.
London prices hit a new high of £404,199, up 4% on the month and 10% annually. London’s sales also rose by 9% on month and 57% annually
There are almost seven buyers to every new property across the UK, with 14 applications per property in London.
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Comments
corporate v independent ?
My local, rural advice to sellers has been that whilst my stocks are getting short so I'd love to have their home on my books, there is every indication that it will achieve a higher price in Spring/Summer 2014 so what is their motivator? If their next move is buying dearer, then try to sell and buy this Winter. Otherwise, sit tight, tart it up & let me offer it in 4-5 months time.
This sort of advice wouldn't suit the multi office corporate model in larger towns/cities of course, but in a smaller rural area it seems that we get more business through giving what we think is best advice, than by using more usual instruction/sales techniques.
Thanks for the advice Mr Smith but we'll sit tight if you don't mind.
When the Canuck head of BOE stated that intertest rates are going up once employment reaches 7% everyone who is just keeping their heads above water is keeping an eye on the economy wondering when a 0.5% increase in the base rate will hit and double many mortgage repayments.
The reality is that with BTL yielding so well, with investors now competing heavily with Help to Buy punters and the HPC crew who would have been 'daft to buy in the last 5 years because of the impending crash'
there is now a shortage of property at the bottom of the market caused by vendors being unable to afford to buy the next property on the ladder. The gap is too big, the market is over extended. £100,000 is cheap enough to borrow at 2% but at 3%,4% 5% or 6? Then there is the capital repayments; an extra £400+ every month.
"However, we are currently seeing only around 35% of our valuations coming to market"
I wouldn't be shouting about that
Our areas conversion rate is currently 63%. Our national average is 54%
:)