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Louise Thomas
Editor
House sales jumped in September as lower mortgage rates boosted the market, according to a property website.
The number of sales being agreed across the UK in recent weeks is 25% higher than a year ago, Zoopla said.
Its market activity data compared the four weeks to September 22 with the same period a year earlier.
Market activity is up across the board and expectations of lower borrowing costs will continue to bring buyers and sellers into the market— Richard Donnell, Zoopla
More stock is also coming to market – and nearly a third (32%) of homes for sale on Zoopla are being advertised as “chain free”.
Coastal and rural areas including Truro in Cornwall and Torquay in Devon have more homes for sale than average, in a sign that second home owners are looking to offload properties, Zoopla said.
It suggested that the growing number of homes for sale is a sign of increased confidence among sellers, including homeowners looking to move as mortgage rates edge down.
Investors and second home owners may also be selling up in response to tax changes and speculation around possible further changes in the autumn Budget, Zoopla suggested.
The most common “chain free” homes are two-bedroom houses, with 41% currently listed as chain free on Zoopla. Previously-rented homes account for 13% of homes for sale on Zoopla.
The website said affordability continues to constrain house price growth, particularly in southern England.
Greater choice for home buyers is also expected to keep house price growth in check in the months ahead.
And not all homes are fresh to the market. A fifth of homes currently for sale were previously on the market at some stage in the past two years, according to Zoopla’s data.
Setting the right price is important to attract buyers, Zoopla said.
Over a third (37%) of sales are being agreed at more than 5% below the initial asking price.
This proportion has improved from a year ago but remains at a level that suggests low house price growth ahead, the report added.
Richard Donnell, executive director at Zoopla said: “Lower mortgage rates are delivering a much needed confidence boost to homeowners, many of whom have sat on the sidelines over the last two years. Market activity is up across the board and expectations of lower borrowing costs will continue to bring buyers and sellers into the market.”
More exclusive central locations like Knightsbridge and Chelsea are taking longer to find buyers, as these high-end markets typically move at a different pace— Tim Bannister, Rightmove
He added: “Speculation over possible tax changes in the Budget and the impact of previous tax changes are supporting the expansion in home for sale.”
Sarah Coles, head of personal finance at Hargreaves Lansdown, said some popular areas for second home ownership face jumps in council tax on holiday homes.
She said: “When they come to sell, there’s already capital gains tax to pay on any gains on second properties… but the Budget could make this bite harder.”
Ms Coles added: “UK investors have typically been drawn to property. People feel it’s something they understand because they own their own home already. However, if you’re considering investing in property, the tax position alone should make you think twice.”
The figures were released as property website Rightmove said that Carluke in Lanarkshire, Scotland, is Britain’s fastest-selling property market this year, with sellers in the area finding a buyer in an average of 15 days.
Giffnock in Glasgow was identified as the second quickest market, with homes finding a buyer in 16 days. Uddingston in Glasgow is third, taking 17 days on average.
Central London locations such as Knightsbridge (135 days), Chelsea (108 days) and Victoria (100 days) are the slowest London markets to find a buyer on average.
Rightmove said property prices are likely to be playing a part, as the slowest areas are all “premium” locations with fewer mass market buyers.
Tim Bannister, a property expert at Rightmove, said: “In London, commuter areas such as Walthamstow and Dagenham are leading the way in finding buyers the quickest, likely driven by well-connected transport links and more affordable prices compared to central zones.
“By contrast, more exclusive central locations like Knightsbridge and Chelsea are taking longer to find buyers, as these high-end markets typically move at a different pace.”
Away from London, Britain’s slowest markets were identified as Brixham in Devon (118 days on average to find a buyer), Skegness in Lincolnshire (115 days), Sandown on the Isle of Wight (109 days) and Abergele in north Wales (106 days).
Across Britain, it is taking 60 days on average to find a buyer, Rightmove said.
Terraced houses are currently finding buyers fastest at 51 days on average, while detached houses are taking the longest to sell at 73 days typically, the website added.
Douglas Nicol, director at Nicol Estate Agents in Giffnock, said: “The local market in Giffnock remains buoyant, with demand often outstripping supply.”
Nathan Emerson, chief executive of property professionals’ body Propertymark, said: “We are starting to see early signs of lenders having the confidence to shift up the landscape by offering sub-4% mortgage deals in some circumstances, which of course sits firmly below the current base rate and points towards future confidence within the economy.”
