Demand for UK property bounces back in June, data shows
Demand has risen in the UK property market, at the same time as the volume of available stock has experienced a slight dip according to a new market report released this week. It suggests that buyers have started to return to the market in the weeks after the election early in the month.
According to data from the National Association of Estate Agents (NAEA), there was a rise in the number of house hunters registered in each branch of estate agent across the country. It said that in June, this was ten per cent higher than it had been in May. The 350 per branch also represented a rise of some 16 per cent when compared to the same month last year, the NAEA said.
At the same time, there was also an increase in the volume of sales agreed per branch, which rose from ten to 11 in June when compared to May. The data also shows an increase in the volume of sales to newcomers, with a rise of 30 per cent in the proportion of sales to first-time buyers.
Mark Hayward, NAEA chief executive, said that there was a change in attitude in June, as the election gave a little more certainty about the future of the property market in the UK.
"In May we saw a period of political uncertainty, with new buyers stalling their house search until after the election. In June however, it seems the market has bounced back, with the number of house hunters rising," he said.
However, while there was a rise in the number of people looking for homes in the UK in June, there was also a drop in available stock, which increased the imbalance between supply and demand that the market has suffered from for some time now. The number of properties for sale per branch fell from 40 on average in May to just 37 in June.
"Although we have seen a decrease in the number of houses available per branch, we have seen a rise in the number of sales, which is typical of this time of year as buyers and sellers push through their property transactions ahead of the quieter summer months," said Mr Hayward.