Property sales are expected to increase in the autumn due to positive changes in the housing market, according to surveyors. A recent survey by Zoopla revealed that a significant number of buyers are making offers on houses after very short viewings, with one in five buyers spending less than 20 minutes before deciding to bid on a property. This trend comes as the UK’s largest mortgage lender predicts a continued rise in house prices for the remainder of the year.
The Royal Institution of Chartered Surveyors (RICS) reported that expectations of increased sales activity are at their highest level since the beginning of 2020. Surveyors anticipate a rise in housing market activity over the next three months, with many predicting an increase in the year ahead. Factors such as government commitments to housebuilding and a recent interest rate cut by the Bank of England have contributed to a more positive outlook in the sales market.
Despite the growing buyer demand, there may not be enough homes entering the market to meet this demand. This imbalance could lead to higher prices and increased competition among house hunters. The Zoopla survey revealed that a significant number of recent buyers made offers on properties after very brief viewings, with some spending less than five minutes looking around. While the average viewing time was 49 minutes, the trend of quick offers highlights the competitive nature of the current housing market.
Daniel Copley, a consumer expert at Zoopla, emphasized the importance of thorough property inspections before making a purchase. He noted that buying a home is a major financial decision and advised buyers to carefully assess all aspects of a property to avoid potential issues in the future. During the pandemic, lockdown restrictions led some buyers to make offers based on virtual viewings, particularly in rural and coastal areas where there was a surge in sales due to increased demand for space and stamp duty incentives.
Although higher mortgage rates have slowed down sales in recent months, there are indications of increased competition among lenders, with expectations of lower borrowing costs in the future. The Halifax, a part of Lloyds Banking Group, highlighted the positive impact of mortgage rate reductions on first-time buyers and those looking to move up the property ladder or refinance. However, affordability challenges and limited housing supply continue to pose obstacles for buyers in the current market.
To make mortgages more affordable, buyers can consider options such as making overpayments, switching to interest-only mortgages, or extending the term of their mortgage. These strategies can help reduce monthly payments and improve overall affordability. As the housing market continues to evolve, buyers are advised to carefully assess their financial situation and explore different options to make homeownership more accessible.