House prices risk becoming 'unsustainable' as sales hit six-year high in December
Mortgages at the fourth highest monthly level since December 2007
Alex Johnson has been part of The Independent's online team since 2007. He has been writing about microarchitecture on his internationally-acclaimed Shedworking blog since 2006 and is the author of Shedworking: The Alternative Workplace Revolution. His latest book is Bookshelf, published by Thames & Hudson.
Thursday 16 January 2014
The number of homes sold per chartered surveyor is now at its highest point since March 2008.
The latest report from the Royal Institution of Chartered Surveyors shows the average number of transactions per surveyor in December was just over 21, double the lowest point of January 2009.
"The housing market is starting to thrive once more," said Peter Bolton King, RICS Global Residential Director. "Sales are at their highest level in almost six years and this is being reflected right across the UK. Growing availability of affordable mortgages has released some pent-up demand from a market that, in recent years, has seen many viable buyers unable to enter the market. On the face of it, this seems like good news but unless we see a marked increase in the number of homes coming up for sale we could well be looking at a price rises becoming unsustainable in some areas.”
The figures follow the Council of Mortgage Lender's latest report which indicates that while the total number of mortgages made to homeowners fell slightly in November 2013, it was still the fourth highest monthly level since December 2007.
First-time buyers took out 27,000 mortgages in November, a slight rise of 0.7 per cent compared to October but up 24 per cent compared to November 2012.
"First-time buyers are firing up the property market and driving its recovery forward," said Richard Sexton, director of e.surv chartered surveyors. "Enticed by lower rates and an array of deals for borrowers with smaller deposits, new buyers have blazed a trail in a lending market which has seen steady year-on-year increases over the past year.
In particular, lending to borrowers with deposits of 15 per cent or less has risen 60 per cent in the past twelve months. The market is bristling with confidence and first-time buyer activity is so far showing no signs of dimming down.
"On the flipside, first-timers are also the most at risk to suffer from rising house prices. If more houses aren’t built, it is first-time buyers who will inevitably be pushed out of the market, as prices are propelled higher."
- 3 Russian girl takes her own life after parents find pornography on her computer
- 4 Ball pool for adults opens in London
- 5 Amal Clooney gives excellent response to fashion question at European Court of Human Rights
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Kim Kardashian on Bruce Jenner's 'story': 'We support him no matter what, and I think when the time is right, he'll talk'
Michelle Obama highlights harsh restrictions faced by Saudi women after meeting King Salman without wearing a headscarf
Russian girl takes her own life after parents find pornography on her computer
Ball pool for adults opens in London
9 reasons Greece's experiment with the radical left is doomed to failure
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
Have we reached 'peak food'? Shortages loom as global production rates slow
Greece elections: Syriza and EU on collision course after election win for left-wing party
British Muslim school children suffering a backlash of abuse following Paris attacks
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
iJobs Money & Business
£13000 per annum: Recruitment Genius: This Pension Specialist was established ...
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...
£25000 - £35000 per annum: Recruitment Genius: A Technical Report Writer is re...
Competitive salary & benefits!: MBDA UK Ltd: MBDA UK LTD Indirect Procurement...