Increase in Cash House Buyers Has been reported
The number of new house buyer enquiries has increased to the highest amount that we have seen in over a year. At the same time new properties that have been listed in the past year are down around 12%. The increase in new house buyers coupled with less supply coming onto the market has analysts predicting a 25 % price increase over the next five years.
More Cash Buyers Than Ever
What’s interesting is the amount of cash buyers that have entered the market and The Huffington Post have reported a 40% increase in Cash Buyers. This means that there are more house buyers available to buy your house fast than ever before and twice as many cash buyers available since before the recession. It is believed that many people are now capitalising on massive amounts of equity that has accrued in their homes over the years and from being able to take out a relatively small mortgage years ago, once they sell up they are paying off their mortgage in full and either choosing to downsize or re-locate out of city areas to more affordable out of town locations. Robert Gardner of Nationwide says in this PDF that this amount of cash buyers of 38% is only slightly higher than the 36% cash buyer figure that was reported in 2014 so there hasn’t been a significant rise in the past year.
Average House Price at a new high
House prices increased a further 0.3% during may and the average price across the UK now stands at just above 195,000. It does however appear that the speed of how quickly prices are rising has in fact slowed during the month of May as April showed a 1% increase. It appears that the analyst predictions of 25% Increase in house values in five years time is spot on the money. Not only are prices increasing by 5% a year but it’s expected that this rate of acceleration could get faster as market conditions continue to improve. Admittedly it is still not easy for buyers to purchase house, mortgages are still tough to get it but it’s expected that the lenders will ease up with their stricter controls and if this happens then more people will be able top buy your house resulting in a faster moving market.
Fastest Decline in Growth since 2005
Even though prices are now at an all time high its been reported in The Telegraph that the speed of Growth halved in April showing the slowest growth rate in 10 years. Up until March we were set to report a yearly figure of almost 10 % growth but this took a sharp decline after April’s figures. Many blame the uncertainty of the election for the sharp fall during April as discussed in a previous direct house buyer article, but now that the dust has settled and people know the result analysts predict a brighter future for the UK Property Market.