Buyers in the UK are becoming more efficient, looking at fewer properties as sales have increased at a higher rate than viewings, according to the latest research.
But it is still a tough market for first time buyers as the average deposit they are paying has increased by 7.7% in the as months to May 2017, according to the latest monthly report from estate agents haart.
It paints a picture of a changing housing market. Supply has increased by almost 6% across the country and by 9% in London but despite the 5.7% rise in stock, supply is still down 20.8% compared to a year ago.
The data also shows that house prices in England and Wales fell by 0.2% month on month and are down 3.2% year on year taking the average price to £228,221. The average price paid by a first time buyer was £168,619.
Overall new buyer demand increased by 0.2% but is down 29.7% year on year but there are still 11 buyers chasing every property in England and Wales.
The report also shows that the number of tenants entering the market fell in May by 8.3% and is down 34.7% year on year while rents have decreased by 1.6% month on month, taking the average rent to £1,268 across the UK.
The buy to let market has slowed. The number of landlords registering to buy is also down, falling by 3.7% in England and Wales and by 9.6% in London while down 35.3% and 52.6% year on year respectively. The number of buy to let sales fell 7% month on month in England and Wales and by 4.2% in London.
‘The UK property market is showing signs of improvement. Stock of new homes for sale has increased by almost 6% across the UK and by a huge 9% on the month in London. And although it remains a tough market for first time buyers who have seen their deposits rise again this month, we saw an 11% increase in new buyers looking to take their first step onto the ladder in May,’ said Paul Smith, haart chief executive officer.
He is predicting a boost after the general election hand in hand with a rise in consumer confidence during the inevitable post-election political honeymoon period.
‘It is obvious that the desire for people to own their own home or move up the ladder is as strong as ever. We have every reason to be confident about the property market’s long term prospects but a greater emphasis from the next Government on helping aspiring home owners and increasing the amount of stock would certainly not go amiss,’ he added.
