The number of new buyers has seen a seasonal drop of 15.8% on the month but there has been a 10.1% annual increase in demand for properties.
Meanwhile, the supply of homes has declined by 17.6% in just one month but is up 5% on last December.
Viewings fell by 17.1% on the month in December as prospective buyers turned their focus to the festive season. Sales also fell but much less dramatically, down just 3.3% over the same time period. This indicates that buyers entering the market became more serious in December.
First-time buyer house prices rose just 2.2% annually in December, much less than the UK average which is good news for affordability. The average first-time buyer house price is now £170,812.
However, the number of first-time buyers entering the market fell 15.3% on the month. This is likely to simply be a seasonal dip as the number of first-time buyer registrations has still risen 6.3% on the year. The number of first-time buyers as a percentage of all mortgages written has fallen to 39.5% from 40.4% a month ago.
However, on a positive note for first-time buyers, the average age for purchasing a starter home has fallen to 31 from 31.5 just one month ago.
The average property price in London has surged 23.5% annually and 3.1% on the month to an average of £555,952. The London
property market saw a festive dip in activity in the property market with the number of new buyers declining 15.2% on the month and the number of new properties for sale declining 15.7% over the same time period. However, there are still 22.5 buyers chasing every property currently on the market.
Paul Smith, CEO of haart, had thgis to say: “While December is generally a slow month for the property market, as people turn their focus to the festive season rather than buying or selling their home, there were a staggering 12 buyers chasing every property to come onto the market. The high level of competition sustained throughout 2015 has pushed house prices up by 14.6% or £29,814 in monetary terms over the year. This is more than the UK average salary according to official government data[1], throwing the price rise into sharp relief – certainly good news for those looking to realise the equity in their home. The average house price is now £233,947, a record breaking high for the fifth consecutive month in a row.
Off the back of this, I expect 2016 to be a particularly active year for the property market, especially the first few months as buy-to-let investors clamour to complete purchases by April and the introduction of the 3% stamp duty surcharge. London will remain particularly popular for foreign investors due to its status as a global safe haven for property investment. With interest rates likely to stay stable, generous mortgage packages will continue to be available, including those that require just a 5% deposit. This will be particularly helpful for first-time buyers, and will also push up demand amongst homeowners and investors. As a result of this I expect to see house prices increase by 9% throughout 2016.”
