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Sellers encouraged to target captive audience of buyers

From Property Talk Live on June 18, 2014

New buyer registrations have increased 29% annually in spite of the mortgage market tightening says a new report from Sequence.

The supply of homes has risen by just 5% annually as seven buyers chase every property sending average UK property prices rising 12% annually to a new high of £215,749.

London property prices continue to soar– now £458,581, up 23% annually but flat on the month. London buyer registrations rocketed 34% annually while supply only increased by 11%.

There are now 14 buyers in London registering for every new property instruction. Mortgage applications decreased 14% annually and 6% on month as MMR cooled the market.

David Plumtree, Chief Executive at Sequence, owners of 300 branches, including Barnard Marcus, William H Brown and Fox & Sons, comments:

“Prices continue to be bolstered by rising levels of buyer demand, up 29% annually, which is around six times the rate of supply, with new instructions up just 5%. Going forward, a reduction of buyer demand and stabilisation of house price growth is unlikely to happen until later this year, so we urge sellers to make hay while the sun shines by taking advantage of the captive audience of buyers now before the opportunity diminishes. There are now close to seven buyers chasing every new instruction and it is this competition which is keeping prices high and sales transactions rising, up 17% annually.

“While house prices remain robust, up 12% annually across the UK and 1% on month, the mortgage market is shifting and we are seeing a cooling off of the number of mortgage applications, down 14% annually, due to the new Mortgage Market Review (MMR) recommendations. When mortgage products become less attractive and interest rates eventually rise, we may see an impact on house prices as buyers, especially first time buyers, begin to struggle keeping up with rising costs of buying a home.”

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Source: Property Talk Live