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Property sales climb higher

Property sales climb higher

Category: Mortgages

Updated: 24/06/2009
First Published: 24/06/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
More evidence that a recovery in the housing market is under way has been provided by HM Revenue and Customs.

The number of property transactions completed in the UK in May at a value of more than £40,000 has continued to improve, rising to 62,000, up from 58,000 in April.

It represents the highest figure seen since last October and means monthly sales have risen by more than 50 per cent since recording a low of just 41,000 in January this year.

The news comes on the heels of the British Bankers' Association announcement that mortgage approvals by banks had continued to increase in May.

Steady monthly rises since November last year has meant the number of loans approved for house purchase have returned to levels last seen in early 2008.

Meanwhile, increasing numbers of buy-to-let investors are keen to return to the market as they believe property prices will stabilise and rise during the next 12 months, according to Young Group.

Results from a survey relating to the second quarter of 2009 revealed 52 per cent of investors are considering buying additional property in London, up 12 per cent on the previous quarter,

Furthermore, 30 per cent are thinking about adding UK assets outside of the capital to their portfolios, compared to 24 per cent in the first quarter of the year.

"It remains to be seen if this burgeoning demand will translate into purchases or whether the languishing mortgage market kills the prospect of a relatively smooth return to house price stability and growth," said Neil Young, CEO of Young Group.

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