UK property market hits a turning point

Published 26th Oct 2010

Countrywide reports monthly increases in both new rental instructions (up 1.78%) and new estate agency instructions (up 16.21%), as well as overall mortgage applications (up by 1%).

Grenville Turner, chief executive of Countrywide, the UK's largest property service Group said: "Activity across the UK property market in September provides some positive signs, particularly in areas which have slowed down in recent months.

"Figures from our estate agency network show that there is still a strong appetite from buyers and sellers. Countrywide's national open house event in September resulted in strong increases in both the number of new properties entering the market and buyers viewing but only those properties that are realistically priced to sell are doing so.

"The rental market continues to go from strength to strength with the number of new rental properties increasing for the fifth consecutive month, which are now at their highest level since November 08. However tenant demand continues to outstrip supply, which is an ongoing concern but also an opportunity for lenders as buy-to-let mortgages continue to be the strongest growth area for our 700 mortgage consultants.

"Overall mortgage applications rose 1 percent in September, which demonstrates that the purchase mortgage market is still active with a new wave of buyers entering the market. While the third quarter is a traditionally quieter period for the market, mortgage applications are broadly in line with overall house sales.

"Remortgage applications remained at their highest levels since June 2009 for the third consecutive month, making up 22 percent of all mortgage applications.

"General stability in the current market should be seen as a good thing but we need to be mindful that the economy is still in a fragile state. The next few months will be crucial as we await the full impact of the government's spending cuts on buyer confidence."

Source: ' UK Property News '

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