October brings welcoming signs of life in conveyancing market
Housing transactions for October have increased by 24 per cent compared to activity in September, according to latest figures from LSL Academetrics.
The jump means transactions are now at their second highest level in the past two years while house prices enjoyed their first monthly increase since May.
It is believe the Government’s Funding for Lending Scheme is one of the primary sources for this increase as lenders begin to pass on cheaper finance to borrowers. However those within the industry are warning much more must be done to ensure October is not a one hit wonder.
Richard Sexton is the Director of e.surv Chartered Surveyors:
“It is crucial that lenders redouble their efforts to boost the amount of cheaper funds reaching the lower end of the housing market, and loosening cautious criteria would go some way towards preventing October’s improvement in buyer activity from being a flash in the pan.
“Despite the positive developments in the mortgage market, equity rich and wealthier buyers remain key to monthly sales activity and are underpinning the local and regional variation in the housing market.
“As a rule of thumb, areas with the most expensive homes are seeing the largest increases, with the average house price in London increasing by 8.3% annually, compared to falls in regions such as the North West, Wales and the West Midlands.
“We won’t see this pattern change until the mortgage market recovers sufficiently for the lower tier to spring into action, and competition to be hot enough amongst first time buyers to buoy prices at the opposite end of the market.”
Content correct at time of publication