An unusually strong summer for the housing market looks set to continue in into the autumn, property experts say.
UK house prices rose 2.1% over June, July and August to hit £170,231, according to the latest Halifax house price index, a rise of 5.4% over the year.
The figures also showed rising activity, healthy demand and affordable mortgage costs, and property experts claim there is more good news to follow.
Jonathan Hopper, managing director of property search consultants Garrington, said: "A better than expected summer for house sales should hopefully bode well for a strong September and October.
"On the ground, agents are seeing viewing numbers up and more committed buyers who are no longer afraid to take the plunge.
"Market activity is up, but not just because of renewed confidence on the part of the buyer. We have seen a noticeable rise in stock levels, and the quality has improved markedly.
"Good quality properties are being snapped up in days, if not hours, particularly in London and the home counties. And we've even seen a return to the days of sealed bids for the best properties.
"What's encouraging is that we're now seeing more stock just below the top level also flying off the shelves. Where before these properties might have been sitting on the market for months, now they're finding buyers in weeks.
"There is definitely plenty of heat in the market. Whether that heat will turn into a burning furnace or blow itself out will be dependent on a number of factors - the continued support of the government, mortgage rates staying low and buyer appetite."
Oliver Atkinson, director of the online estate agents Urban Sales and Lettings, said: "For prices to have risen so consistently during the three summer months is especially impressive. Traditionally the market quietens down as many people focus more on holidays than house hunting.
"That momentum is continuing into September, which is shaping up to be a truly bumper month for sales.
"Buyer sentiment is improving steadily, and there is a growing sense that - despite the Bank of England's forward guidance - the current rock bottom interest rates won't be around forever.
"The result is the release of a lot of pent-up demand from first-time buyers, as those who have saved hard for a deposit decide that now is the time to take the plunge.
"We've seen a gentle migration of people from renting to buying as increasing numbers of those with savings calculate that they'd be better off buying. That logic has rarely looked so appealing.
"Even regions that endured the worst of the slump are returning to growth as the market returns not just to normality, but to strength."
Ben Thompson, managing director at the Legal & General Mortgage Club, said: "The pace of the recovery is sustainable especially when you consider the downturn we have had since 2007. However, the picture remains regional and patchy across the UK showing there is still work to be done in some areas.
"The concern is that the market doesn’t overheat and that prices rising too quickly start to make the prospect of home ownership or moving into more suitable housing disappear into the distance for many people.
"Gentle house price growth over a number of years close to the level of inflation or even a little below would be preferable as that would slowly bring a more sustainable balance to the housing market.
"Above all the best solution to housing affordability would be the widespread construction of suitable homes to increase supply and meet the undoubted demand.”
Comments