In this months cities house price index report house price growth has slowed to a more sustainable pace.
Leicester is the fastest growing city in the 20 city index, at +4.8% — this is the first time the city with the highest growth rate has dropped below 5% price inflation since 2012. The London market is bottoming out, with growth picking up to 0.2% from 0.0% last month.
A considerable change in the mix of buyers purchasing homes across UK cities is causing conflicting signals on the strength of the UK housing market.
In 2013, 29% of purchases were made by cash buyers (a mix of homeowners and investors). Today, cash buyers make up just 1 in 4 buyers. Meanwhile, demand for new mortgages is at its highest since 2008, indicating there is still a large pool of people wishing to buy and sell their homes.
Signs of life return to the London market as it begins to show a greater realism with its pricing and modest increases in market activity. The expectation is that sales volumes will start rising.
This is good news for agents, as despite mixed market signals, both demand and sales volumes indicate the market is picking up.Download report