However, according to a new analysis form Townends estate agents, the one challenge those involved in the process face, is that the system is not yet geared up for the pace of change.
Low interest rates, more accessible mortgage products as well as stimulus measures from the government such as Help to Buy, mean consumer confidence is up, it points out in a new report.
This has also caused prices to rise in many areas, not just London, as the level of good quality properties coming to the market has not kept pace with demand. Rising prices and increased speed of sale in terms of finding a buyer are generally viewed as being positive as far as sellers are concerned. However, the speed at which the market has accelerated over the last few months has brought with it some unintended consequences.
An increase in mortgage lending activity and fewer surveyors in the market means home buyers are facing delays in getting a property survey carried out. In addition, solicitors are struggling to cope with the increased workload and the time taken to raise and answer enquiries is growing.
This in turn impacts the length of time needed for a sale to move from ‘agreed’ to ‘exchange of contract’, which is approximately five weeks longer than normal.
‘The reason for this is that there is insufficient capacity within the system to cope with the additional sales numbers,’ said Douglas Sleaper, sales director for Townends estate agents.
When the market dropped, many surveying and conveyancing firms trimmed their headcount and most companies have been running lean in a drive to be as efficient as possible. ‘The problem now is that whilst demand has increased, there are no more surveyors today than there were six months ago. This is made worse by the higher levels of lending that are filtering though, with remortgage numbers also increasing,’ explained Sleaper.
‘The housing market in general is showing strong signs of improvement and therefore solicitors and surveyors are naturally busier. It’s important that buyers and sellers alike appreciate that the market has been challenging for some time and firms are cautious not to start increasing head count until it is proven to be more than a short term blip,’ he pointed out.
‘It is in the interest of all those involved with the sale of a property that transaction times are shortened and the process is as efficient and stress free as possible, but a little patience is still required. Being aware at the outset that even simple things are taking longer than they traditionally would can help everyone to be a little more understanding, if not any less stressed,’ he added.
He believes that buyers and sellers should regard a good estate agent and solicitor as being able to really make a difference in ensuring clients get the right advice and to drive the sales process through as quickly as is possible.