New research has found that the number of buyers chasing each property in England has hit its highest level since 2008. The latest housing market review from Countrywide shows that 12 buyers are chasing each new property coming on the market, an increase of over 20 per cent compared to the 9.7 buyers in the first three months of 2013.
There search also found that the governments controversial Help to Buy scheme had been a success. Keep reading to find out more.
London has 25 house buyers for every one seller
Countrywide’s research found that the rate of buyers to sellers has increased by a quarter in the last year, from 9.7 buyers to each new seller in the first quarter of 2013 to 12.3 buyers to each new seller in the first three months of 2014.
In London, the figure was much higher with 25 buyers for every new property.
The firm says that consumer sentiment driven by a recovering economy,government support and increasing mortgage availability is stimulating new and existing demand.
However,it still expects the number of transactions in 2014 to be less that 75 per cent of the long run average, even though the Help to Buy scheme is proving to be a success. We look at this next.
Research also shows Help to Buy has been a success
The Countrywide research shows that the governments controversial Help to Buy schemes have so far been successful. Almost a fifth (19 percent) of new homes built since April 2013 were sold through the Help to Buy Equity Loan scheme, with some housing markets seeing half of properties transacted this way.
In the first 10 months of the Help to Buy Equity Loan scheme being introduced, a total of 14,823 new properties have been purchased through the scheme, the majority by first time buyers.
Countrywide also found that more new homes have been bought using the Help to Buy Equity Loan scheme in areas which have seen the smallest increases in house prices over the past 12 months. For example, over the past nine months 28 per cent of new houses built in the North East sold via Help to Buy Equity Loan compared to just 9 per cent of new houses built in London.