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Property recovery back on track

Property recovery back on track

Category: Mortgages

Updated: 01/06/2010
First Published: 01/06/2010

MONEYFACTS ARCHIVE
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Home sellers are making the most of the scrapping of the Home Information Pack (HIP), with thousands of new properties being put on the market in the last week.

The rush of new listings has given the housing market a welcome boost after a few weeks in the doldrums caused by the uncertainty over the impending general election.

According to Rightmove, the number of new listings on its website increased by more than a third (35.4%) in the week after the announcement compared with the preceding week.

"We would expect to see a post-election pick-up in fresh stock coming to the site," said Miles Shipside, commercial director of the property website.

"However, 35% is a significant increase in new listings, and indicates that many more speculative sellers have been encouraged to bring their properties to market since HIPs were scrapped.

"It seems that the additional cost and red tape were putting sellers off."

The news comes as another survey also revealed that the housing market recovery had picked up pace following the distraction of the election.

First time buyer activity was found to be 4% higher in May than in April.

Meanwhile, remortgaging activity grew year on year, rising by 63%, but dropped by 5% over the month, as the number of mortgage deals available remained constrained.

"The housing market's recovery seems firmly entrenched, and we are in much better shape than 2009," said Ross Bowen, managing director of Connells Survey and Valuation, who conducted the research.

"But, we are not in the clear yet. The prospect of public spending cuts – and the rise in unemployment these may bring - looms on the horizon.

"We need to wait for the new Budget to see how the new government will maintain the recovery's momentum."

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