Despite perceived market uncertainty due to the general election, a latest index report has indicated that asking prices for property in the UK actually rose during the last month.
According to data from Home.co.uk, average property prices across England, Scotland and Wales increased over the previous month, suggesting continuing confidence in the housing market.
Information from the report shows that there was even a small growth in lacklustre regions such as the North West and the North East, both up by 0.6%. On average, the asking price of houses in England and Wales rose by 0.8% during the last month.
A Tory victory brought more encouragement to the housing market, particularly for first-time buyers, who will be buoyed by the continued Help to Buy scheme and the promised Help to Buy ISA, scheduled for the Autumn. In addition, the extension of the Right to Buy scheme to housing association members, alongside increased home building, has also raised confidence.
Encouragingly, the data showed that supply of property for sale is up by 8% across the UK, in comparison to one year ago. The East of England was found to be the fastest moving market over the last year, with the average time a house spent on the market down by 15%.
Asking prices for UK property rise again
Doug Shephard, Director of Home.co.uk believes that this year has started extremely positively, commenting, ‘2015 is already looking like a more sensible and sustainable year for the UK property market.’ He continued by suggesting that,’ confidence is growing in the northern regions and the London market has managed to exit a period of frenzied growth without a major catastrophe.’
Shephard believes that, ‘now we have the election out of the way, much uncertainty in the market has evaporated. Moreover, property prices are rising at a far more sustainable rate than we witnessed last year.’
He also indicated that he feels that the buy-to-let market in particular was grow at a substantial rate, with no threat of Labour induced rent caps. Additionally, Shephard feels that 2015 and 2016 will be steadier for the property market, with steady price increases, more mortgages available and quicker sales.