According to reports compiled by Rightmove.co.uk the UK has registered the highest monthly increases in five years in property asking prices. The recent UK housing report indicated an increase of 3.6 per cent. This means that those looking to sell their home are demanding more than the previous years.
Miles Shipside, Commercial Director, Rightmove thinks this situation would confuse the real picture. Industry insiders believe that this push has come at this stage to circumvent the Home Information Packs. The HIPs, due to come into effect in June is a new initiative of the UK government. It will aim at helping buyer and sellers in the transaction process.
The HIP regulations requires having all essential documents like evidence of title, terms of sale, copies of planning permission and warranties, work guarantees and energy performance certificate on the property.
Northern Ireland is exempted and Scotland has its own version of the HIP.
According to the Royal Institute of Surveyors ( RICS) the market is in ‘rude health’. The unsold properties fell to the lowest level since June 2004.
More and more people are looking at sharing options and these include even the well paid professionals. They just cannot afford the deposits required.
A steady rise in interest rates is also pushing prospective buyers behind. Interest rates are expected to rise to 5.5 per cent. Even first time buyers therefore are not keen on applying for home finance.
According to Shipside, studies show that the property market in UK has followed a boom and bust pattern for the last 30 years. Without the downturn of economic hardship and resultant forced sales it is difficult to find the balance between sustainable pricing and volume of sales.
For those selling properties in London and the south it is not too difficult. However finding a new home is a challenge.
