Market Update

With Easter firmly behind us and the weather, at last, showing signs of warming up, activity in the property market is lively in both sales and lettings although sensible pricing remains crucial to securing a successful transaction.

Recent figures from the Council of Mortgage Lenders (CML) show that first-time buyer numbers increased by 3% in February marking the best start to a year since 2008 and that activity in the first-time buyer sector was 17% stronger in February than in February last year. This, combined with January’s results show the largest number of first-time buyers in the market in the first two months of the year since 2008.

CML Director General Paul Smee said: "First-time buyers are continuing to take advantage of more favourable market conditions helping to drive the underlying trend for resilient house purchase lending.

"We hope that the new initiatives announced by the government in the 2013 Budget will further stimulate first-time buyer activity but also help those “second steppers” looking to move into a new or existing home."

First-time buyers accounted for 43% of all house purchase loans in February. This was the sixth consecutive month that this indicator has been at or above 40% suggesting that market conditions continue to improve for first-time buyers.

These figures are encouraging and another step in the right direction albeit that first-time buyer numbers have been at very low levels since 2008, so the only way really was upwards!

The Funding for Lending Scheme has helped provide more competitive mortgage rates across the board although only in recent months have we started to see more deals at the higher loan to value end of the market.

The CML figures also show that the number of first time buyers in February was not only higher than the previous month but was also 17.1% higher than this time last year suggesting such buyers are returning to the market. This, in turn, should encourage others to consider moving.

A recent report from Rightmove shows that asking prices are at their highest level for some years but it must be remembered that these reflect seller sentiment and not necessarily the prices that are, or will be, achieved. Our view is that prices have moved forward but that realism is still required. In many cases a realistic asking price helps generate a choice of buyers from whom to select the most appropriate both in terms of price and ability to meet you moving goals such as timescale.

The letting market remains strong although recent reports also highlight that rental values are showing strong signs of stabilising. As with sales, correct pricing is key alongside securing a quality tenant, particularly as the average length of a tenancy is now circa two years.

We strongly recommend seeking professional advice on value at the earliest possible stage when considering a sale or letting.

At Lawrence Rand, we will always look to provide you with an accurate view as to value and also the necessary marketing and service delivery required in order to achieve the best possible value within the timescales you require.

As always, the team and myself look forward to being of service to you.

Peter Lawrence