What the property market doesn’t need is hype, just steady growth

We track most of the monthly reports on property prices produced on a monthly basis. This report summarises what’s being said about the market and includes Kate Faulkner’s comments on what this means primarily for the general public, but also for the industry, market and economy.

Report Headlines:-
Rightmove – “New sellers ask over £250,000 for first time as South East ‘lifts off’”
Home.co.uk – “Buyers compete as supply shrinks further”
RICS – “Housing market gathering momentum”
Acadametrics – “House prices rise to highest on record in May”
Savills – “Many first-time buyers will continue to rent as house prices remain out of reach despite the introduction of government initiatives”

Kate Faulkner comments on Report Headlines:
“The momentum of property prices from an asking price perspective shows a confidence from sellers in the market, which we need to be sure translates into real property price growth when it comes to sales.”

New Home Property Prices
Savills – Help to Buy – Effect of prices: “Critics have expressed concerns that the scheme may yet prove self-defeating by stoking up house prices and pushing them even further out of reach of first-time buyers. We believe Help to Buy will stimulate values, boost transactions and encourage more private house building. Assuming a successful take up of the scheme, we could see house prices rise by 15.3% over the next five years, rather than 11.5% previously forecast. However, we do not expect it will cause a house price bubble. Help to Buy is unlikely to transform the market and reverse the demand in rental homes. (Q2 13)”

Kate Faulkner comments on New Home Prices:
“It’s interesting that a figure of house price rises of 15% over the next five years sounds high, however, the big news is if this were to happen, it would be the first time since in the last six years that house price growth has kept pace with inflation.”

Read the complete Property Price Summary for June 13 here, including:-

Regional Property Price Differences
Demand for Property
Supply of Property

What to do next? For more help, from Kate and her team, join Property Checklists for free.

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