Property market bounce bucks summer trend

The property market is unlikely to experience its usual seasonal drop-off in activity this summer, due to more affordable property prices, good mortgage deals and more people opting to spend their holidays in the UK, says Propertyindex.com.

The website has seen a high level of activity, with the number of property enquiries rising steadily over the past four months, increasing by 15% between April and July.

In a bid to save money, fewer people are choosing to take long summer holidays abroad and are instead using the period to move house, taking advantage of the opportunities available in the housing market, June and July market activity shows.

Low and stabilising prices, coupled with good mortgage deals are encouraging home moves and first time buyers back onto the market. Vendors are keen to sell now while demand is high and miss out on further price falls that may occur if an increase in stock closes the gap between supply and demand.

Lee Bramzell, Chief Executive of PropertyIndex.com, comments:

“We would usually see a summer slowdown in housing market activity as people jet off on their holidays and put their move on hold, but this year has been very busy so far, with both searches and direct enquiries for properties on our site surging between January and March and then increasing steadily into July. Based on this trend, we are expecting a similar level of activity in August.

“Not only are more people staying closer to home this year, but the combination of more affordable prices, lower interest rates and signs that the market is finally stabilising are helping to buoy market activity. With demand outstripping supply, those who sell now before more of a balance is restored are likely to secure a quick sale at a good price. Of course, this level of activity can only be maintained and trigger a proper recovery if consumer confidence returns, simultaneously driving up the amount available stock and number of interested buyers and if the level of mortgage approvals continues to increase, with loans being made available at higher LTVs.”