Average first-time buyer property prices across the UK are also on the increase, up 4.3% annually and 1.7% on the month.
The number of new buyers registering has increased marginally on the month in May – by 0.3% since April. The number of new buyer registrations is down 12.7% annually. Given the particularly high levels of buyer activity in 2014, a fall in the number of new buyers is to be expected.
The average loan advanced to a first-time buyer has increased 4.2% annually to just shy of £130,000, reflecting strong institutional confidence in lending. As with the number of new buyer registrations, first-time buyer registrations have fallen annually, which is a reflection of the strength of last year’s market.
The volume of new property instructions coming to the market has increased 2.6% on the month which emphasises that sellers are feeling confident when it comes to putting their home on the market.
There are now 11 buyers chasing each property for sale across the UK, which is a slight fall in activity levels on an annual and monthly basis but still shows that the market is busy, with consumer confidence high.
Paul Smith, CEO of haart, commented:
“With reports of consumer confidence on the rise, spending on the up and zero inflation, it’s full-steam ahead this spring for the UK’s, and the Capital’s, property market – which are benefiting from the positive glow of the general economic recovery. Eleven prospective buyers are chasing each new property instruction across the UK which has caused a near 6% annual increase in property prices – with 20 buyers chasing each property in London the annual price increase is closer to 17%.
“With all this positivity in the air and continued low mortgage rates more people will aspire to buy, and without accompanying fresh supply property will become more unaffordable. First-time buyer activity in London is down significantly with 30% fewer first-time buyer registrations in May 2015 compared to May 2014. The result will be that talented young professionals are driven from key areas as they can’t afford to live there. This is bad news for local economies and UK plc as a whole and we need at least 200,000 homes built every year across the next Parliament to keep the housing supply crisis under control.”
