Housing industry sales went 40% up in March, fanning the speculations of revival in the property market of the country, with the flocking of new buyers in spring season.
The recent disclosure made by HM Revenue & Customs that homes sales in the UK increased 40% in March 2009 has given a boost to the hopes of recovery in the country’s property market, as reported by Times Online.
Around 60,000 homes, at an estimated worth of £40,000 each, were sold in March 2009 as compared to 43,000 houses and flats sold in the previous month. On a basis of seasonal adjustment, the figures demonstrate a healthy recovery in sales, at a 13% increase in sales from a figure of 54,000 to 61,000. The sales of non-residential properties also grew to 9,000 in March from 6,000 in February.
The rise seen in the sales figures are the consequence of the reports by Bank of England that mortgage lending has increased modestly. From February to March, there was an increase of 16% in lending, according to the Council of Mortgage Lenders (CML).
House rates have dipped over one-fifth from their peak level in 2007. According to reports, house price activity has started picking up to a limited degree. Industry experts believe that generally, there is an increase in property sales in the spring season with new purchasers flocking into the market. Moreover, as the buyers’ interest rose, the Bank of England also pointed towards the increase in viewings and inquiries.
However the market is indicating towards the start of stabilization, it is still quite early as clear from the inferior transaction levels. Lending in March 2009 was 52% lower from its level in March 2008.
According to a Research Analyst at RNCOS, “The surge in the UK’s housing industry gives a boost to the hopes that property market may ultimately be able to see the long awaited upturn in sales. Although, the market is yet to fully overcome the impacts of recession, credit crisis and probability of further decrease in house prices. So, it would be quite early to predict anything precisely about the market.”
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