The National Association of Estate Agent's (NAEA) market report for February shows a year on year rise of 25% in the level of available housing stock.
The number of house hunters registering with an agent across the country also rose to 268 reported in February compared with 252 in January per branch, the highest level for seven months.
Sales increased across the property market in February, growing from an average of six to eight per branch month on month, despite continuing consumer concern regarding interest rate rises. The percentage of sales made to first time buyers also increased slightly from 24% in January to 25% in February.
‘To see such a significant boost in activity amongst sellers compared with this time last year is encouraging news for the UK property market. The signs are that they are being more realistic about the price they can expect to achieve when they put their house on the market. This means that, on the whole, supply can meet demand levels, meaning a more stable market, for the short term at least,’ said NAEA president Michael Jones.
But he warned that the picture is still very variable across the UK with agents reporting much higher growth in enquiries and stock availability in some regions than others. ‘Undoubtedly, broader economic constraints on spending continue to impact on consumer confidence, especially at a first time buyer level and the effect of the public sector cuts has yet to be fully felt,’ he explained.
‘With limited mortgage availability and the concern about a likely rise in interest rates still putting off many of the people who otherwise would be looking to buy, it is important that the government does everything it can to encourage growth at this crucial stage of the recovery process,’ added Jones.
Meanwhile the taxman is warning that renting out accommodation during the Olympics next year may be subject to tax. HM Revenue & Customs (HMRC) is reminding anyone thinking of renting out a spare room to visitors to check the Rent a Room Scheme first.
Under the scheme, you can receive up to £4,250 a year tax free if you rent out a furnished room in a residential property. You can take advantage of the scheme if you let furnished accommodation, a room or an entire floor of your home, to a lodger who pays to live in your home, sometimes with meals provided, and who occasionally shares the family rooms.
In addition, you can use the Rent a Room scheme if your home is rented as you don't have to be the owner. The scheme does not apply, however, if your home is converted into separate flats that you rent out, if you let unfurnished rooms in your home, or if you let your whole home. In these cases you need to declare the rental income to HMRC and pay tax in the normal way.
In the run up to the Games HMRC will conduct free advice sessions around the country on renting out property. The next session is on 17 June at St John's Church, Broadway, Stratford, London. The event runs for around three hours, starting at 10am.
