Properties for sale at five-year high, but affordable homes decline

According to Experian’s latest Property Index, high-end properties valued over £500k have experienced the biggest rise, with the number of homes for sale increasing by 20.4% year-on-year. Homes priced between £250k and £500k also witnessed a 17.4% increase. The changes to stamp duty which came into effect at the end of last year may be stimulating the market here with buyers able to make their money go further.
 
However, while the number of properties entering the market overall has been on the rise, there has been a slight reduction in more affordable properties available. The number of homes for sale between £100k and £250k, and homes valued under £100k, saw decreases of 2.5% and 2.9% respectively.
 
Jonathan Westley, Managing Director of Consumer Information Services at Experian UK & Ireland, commented:

“The dismantling of last year’s supportive housing schemes and stricter lending criteria in place mean that for many of the people looking for more affordable housing, demonstrating their eligibility for mortgages is going to be key. Mortgage applicants must show themselves in the best light to lenders, for instance having a strong credit score, and it is just as important for lenders to support borrowers through the process as best they can. Lenders must ensure they fully understand the applicant’s individual circumstances, particularly their ability to manage the repayments now and in the future, before granting a mortgage.”

Regionally, the South East saw the largest number of properties coming onto the market, with 30,783 homes for sale, a 6.8% increase on the Q1 2014 total of 28,825. The Outer Metropolitan region saw the largest percentage increase, with 8,253 houses for sale in Q1 2015, compared to 7,193 in Q1 2014 – a substantial 14.8% increase. This was followed closely by the North West, which experienced a 14.1% year-on-year increase from 25,708 properties in Q1 2014 to 29,319 properties in Q1 2015.
 
The only UK regions to see a fall in the number of properties available on the market were Scotland and Wales. Scotland experienced a 7.2% drop from the Q1 2014 total of 10,097 to the Q1 2015 total of 9,370, while Wales saw a slight decrease of 0.7% from 11,856 properties to 11,774 properties.
 
However, Scotland saw a notable boost in the number of properties over £500k coming to the market for sale, showing a 31.4% rise from Q1 2014 to Q1 2015, although this represents a relatively small increase in terms of real numbers, from 306 to 402. The number of homes for sale in the top bracket in Yorkshire and the Humber also saw a significant rise, with the Q1 2014 total of 628 growing to 788 in Q1 2015 – a 25.5% increase.