"It certainly feels as if the market is returning to its traditional pre-Brexit cycle."
According to the report, new buyer demand for homes rose by 20% on the month and by 14% annually. The number of properties coming onto the market has risen by 15.3% on the month, however is down by 3% on the year. This month there are 15 buyers chasing every property across England and Wales.
The market has become less efficient this month, as the number of transactions has decreased as the number of viewings has increased. Meaning that buyers are choosing to look at more properties before they buy.
The average purchase price for first-time buyers has fallen by 4% on the month, and by 0.7% on the year. This comes as the number of first-time buyers entering the market has risen by 15.8%, and by 20.3% on the year.
haart found that despite the average purchase price falling, the average amount paid of a deposit has rose by 10.2% on the month, and is up by 10.6% on the year.
The average property price in London has fallen by 0.1% on the month, however is up by 2.5% on the year. The number of new buyers entering the market has risen by 13.7% on the month, and is up by 1.1% on the year. At the same time, the number of new instructions has rose by 16.3% on the month, but is down by 10.8% on the year. Sale transactions rose by 15% on the month, but fell by 10.1% on the year.
What's happening in the PRS?
The number of tenants entering the market across the UK has risen by 15.4% on the month, but is down by 1.5% on the year. Due to a rise in demand average rents are up by 0.9%. The average rent now sits at £1,367 across the UK. Demand in London has risen by 29% on the month, but fallen by 13% on the year. London rents have risen by 2.2% on the month, and the average rental price now sits at £1,882.
The number of landlords registering to buy has risen by 14.8% on the month, but has fallen by 14.2 on the year. In London, the number rose by 7.2% on the month, but is down 17.6% on the year. The number of buy-to-let sales rose by 18.3% on the month in London but are down by 0.2% across England and Wales. This is down 14.8% on the year in London, and are up by 2.9% on the year across England and Wales.
Paul Smith, CEO of haart, comments: “The UK property market surged in February. New buyer registrations rose by 20% on the month and are up 14% on the year, taking the demand to move home up to a level not seen since the month after the UK voted to leave the EU. Viewings rose across the country, transactions increased in London by 15%, the number of homes being put on the market began to improve. It certainly feels as if the market is returning to its traditional pre-Brexit cycle.
The important thing now is to get on with the business of building homes. Housebuilding is still not at the level needed to rectify the UK’s housing shortage. The Government’s latest reforms to the planning system could go some way to rectify this, but the Green Belt remains off limits for large scale development of family homes. While supply remains low, I urge those thinking about putting their house on the market to act now whilst demand continues to rise rapidly, to snap up a premium on their property.
We also saw improvements to London’s rental market in February. Figures from the past couple of months are bucking trends seen post-Stamp Duty surcharge change, and landlords are returning to the market, with sales to landlords jumping 18% on the month. Clearly potential investors are recognising the long-term value of property, in comparison to the overvalued stock market, in an uncertain economic outlook.”
