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Housing market springs back to life

Housing market springs back to life

Category: Mortgages

Updated: 09/07/2010
First Published: 09/07/2010

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Life appears to have surged back into the housing market, after it was revealed that the number of properties sold rose by 20% in June.

An estimated 63,500 homes were sold last month, up from 52,975 in May, as buyers returned to the market, according to the latest LSL Property Services/Acadametrics research.

However, house prices continued to fall and were down 0.5% on May, as sellers finally started coming to terms with buyer demand for greater discounts on their prices.

It means the price of an average home now stands at £218,119, still 7.7% higher than a year earlier, despite the monthly drop.

"June's transaction figures are the highest this year and suggest last month's stalemate between sellers and buyers failing to agree terms is on the wane," said David Brown, Commercial Director of LSL Property Services.

"We can't discount further house prices falls over the next few months, as the market continues to stabilise and normalise.

"However, the demographic age profile of the UK suggests there is an army of over one million would-be first-time buyers delaying purchases, who are ready to enter the market when conditions allow.

"This suggests the current drop in house prices may well be short lived. The key to recovery is more attractive first time buyer mortgage deals offered by lenders."

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