Happy New Year! The housing market is looking bright for 2013

Posted: 20/12/2012

According to the Council of Mortgage Lenders, more homes have sold in the UK in 2012 than expected! This is good news for 2013 as the rise in house sales is thought to be because of the Funding for Lending scheme which has increased the availability of mortgages. There has been a small increase in gross lending from £12.78 billion to £12.9 billion in November which has been helped by low mortgage rates and greater mortgage availability.

A total of 930,000 property transactions took place so far in 2012 which is 13% more than estimated and also 5% more transactions than in 2011. More good news is that repossessions were far lower in 2012 than originally predicted with 25,000 repossessions recorded so far this year instead of an estimated 35,000 rising to 37,000 in 2014.

In late November, the banks started to lend to more first time buyers which has increased the number of first time buyer’s right across the UK. This is good news for 2013! The latest figures state that 10,000 first time buyers have taken out mortgages on properties in the capital between July and September. This is the highest amount of first time buyers to purchase a property in London during a three month period for almost three years!

The Council of Mortgage Lenders believe the housing market will ‘grow and improve’ in 2013 with a predicted 950,000 property transactions as household incomes stabilise and slowly but surly recover. However, it may be some time before the property market figures climb as high as those recorded in 2006 and 2007, when there were 1.67 million transactions across the whole of the UK in 2006 and 1.61 million transactions in 2007.

There has also been a huge rise in planning application approvals in 2012 according to the Home Builders Association. A massive 33,881 homes across England were granted planning permission between July and September which is a 36% rise on the previous three months and a 17% rise compared to the same months of 2011. However, this is a far cry from the 64,500 granted planning applications that were recorded during 2006 and 2007.

Do you think the future of the housing market is bright for 2013? Are you a first time buyer looking to purchase your first home or are you looking to climb a step higher on the property ladder in 2013? Well, Pali provide Conveyancing searches nationwide including Local Authority Searches, Drainage and Water Searches, Environmental Searches, Coal Mining Searches and Chancel Check Reports. If you would like more information on our range of products, please visit our Services page, alternatively, you can email your questions at search@paliltd.com or call us on 0151 691 1170. The staff at Pali are always happy to give you advice and answer your queries.

Amanda McGovern, Pali Ltd

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(0) Comments 2013, banks, mortgage, property, first time buyers, housing market

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