There has been a big rise in the number of market appraisals, the UK’s biggest estate agent said this morning.
Countrywide said it carried out 24% more appraisals in June than in the same month last year – and it could be a sign that the property supply drought is ending.
In London, where a shortage of stock has been felt most strongly, the number of appraisals rose 14%.
Countrywide’s CEO Grenville Turner said: “If this rise in appraisals translates into a larger number of available properties coming on to the market, increased choice for buyers will serve to alleviate some of the upward pressure on house prices.”
The firm also said more than half the people (55%) who have so far used Help to Buy were formerly private tenants. A further 30% were living with their parents.
But Countrywide said that the 95% mortgage scheme has also “provided a lifeline” to people who already owned a property but lacked sufficient equity to move on.
Countrywide noted: “For existing home owners in parts of northern England who bought in 2006 or 2007, Help to Buy has provided a lifeline after falling house prices have reduced the equity of many households, preventing them moving.
“In the north-east, almost 30% of homes purchased through the scheme have been bought by existing home owners.
Nigel Stockton, group financial services director, said: “Help to Buy remains an extremely popular policy among aspiring home owners.
“While the use of the scheme by existing home owners is perhaps less politically acceptable, they tend to be households with little or no existing equity in parts of the country where house prices remain below the levels at which they bought.”
* The Land Registry has reported that house prices in May crept up just 0.4% across England and Wales to stand at £172,035.
However, prices rose in five regions – and fell in five. The biggest monthly fall was in Yorkshire & The Humber at 0.9%. Sales volumes in March, the latest figures available, were 63,587, up 16% from May last year.
Comments (2)
Wilko is right, we see a great deal of agents selling the idea of over the top prices just to obtain the instruction, and on those few that are sold, you see the valuation being reduced by at long last, some surveyors with an ounce of common sense.
Now don't get me wrong, I like most individuals would like to obtain the most we can for a product, however property is a completely different animal as it has such an influence on the economy, therefore to sell your proposition as an agent purely on price is both naive and nonsensical and part of an agents job is to educate the vendor into understanding this.
I believe, with the technology and vast amount of information we have between property agents and lenders, there should be a far better standard at which agents are able to practice, and as such, the sooner proper regulation is implemented the better, and i for one would endorse and even lead the way!
Something simple for all to take in board, if a lender uses an indexation value, and these are not just whimsical finger in the air values, then why are agents not using these as a more precise guide? Answer: Greed! Thank you and have a great day.
Mmmmm…doesn't need an expert to work out why appraisals have gone up, but this WONT help the instruction drought because the majority of the owners of these properties that are now being valued want way over what they are actually worth. And whilst their are agents (online and high street) that are happy to indulge them, they don't usually get their price-so stay on the market unsold. On the occasions that they do achieve an over inflated price ….the surveyors are having none of it.
Don't know if it is the same where you are but the ripples from London "topping out" are definately being felt where we trade. Hopefully the "levelling out" process won't take long. Stll plenty of buyers for property at the right price, but overpriced properties aren't getting a sniff.