UK Housing Market Boosted By 12% Spring Sales Resurgence
UK house sales rose by 12 per cent in April, as consumer confidence improves after a two year decline. Furthermore, The Financial Times reports that the average estate agent has 14 per cent more properties on the market over the past month than during the same period last year.
Property market experts attribute the rise to falling mortgage rates, and ease in the cost of living, and a better choice of properties on the market. Spring is traditionally a busy time for the housing market, as the better weather and longer days draws out viewers, and sellers spruce up their properties with a garden tidy up and a fresh coat of paint.
The surge of activity continues into the summer, as buyers with children are keen to get into their new homes before the start of new school terms in September and ahead of any holidays they may have booked. It is hoped that interest rate cuts and falling inflation will keep the property market buoyant throughout the rest of the year.
Overall, average property prices have fallen slightly compared to the same time last year, but there is significant regional variation. While prices have fallen in London and the south and east of England, they have risen in northern England, the West Midlands, Wales, Scotland, and Northern Ireland.
Meanwhile, the Housing Secretary Michael Gove has directed the Mayor of London to conduct a review of the London Plan housing policies. Gove was highly critical about the slow delivery of new homes in the capital, and has called for a review that will focus on the current use of industrial land that could potentially be converted into housing use.
The review will also assess 47 ‘opportunity areas’ across London that could potentially each deliver up to 2,500 new homes, or 5,000 new jobs, or a combination of the two.
Minister for London Greg Hands said: “It is unacceptable that Londoners don’t have access to the homes they need due to persistent under-delivery of home building, which is why we’re directing the Mayor to review London Plan policies.”
He added: “This action comes on top of millions of pounds in government investment to regenerate estates, unlock major brownfield sites, and build thousands of new homes. But government cannot act in isolation – we need the Greater London Authority to step up and work with us, so we can provide affordable housing for all.”
It is believed that many brownfield sites in London are locked into the planning system with very little progress being made. Currently, about 37,000 new homes are created each year in London, but it is projected that this needs to be increased to 62,300 to meet demand.
