Asking prices for properties for sale are becoming more steady, with less of them being dropped by sellers looking to move a flat or house. In fact, Edinburgh showed the second-lowest proportion (after London) of discounted properties in the UK with only 27.7% of properties for sale having their price dropped. This is compared to a much higher national average of 32%, which fell from 37% last year. On average, property prices are being reduced by just over 6%, down from 7.6% last August.
Altogether, the trend is pointing towards a growing confidence in sellers, who appear to be happy to wait for the right buyer to come along and pay a price they are happy with.
At the same time, things are starting to look up for first time buyers as gross mortgage lending hits nearly a five year high at an estimated £16.6 billion in July, a 29% on last year. In fact, it is the highest estimate the Council of Mortgage Lenders (CML) has published since October 2008. According to the CML, the increased lending activity is down to stronger housing and mortgage markets as well as falling interest rates on fixed rates due to the Funding for Lending scheme.Having said that, those looking for a mortgage also have a lot more choice than they would have had even a year ago. Last month, more than 10,000 mortgage products were available to consumers, the highest number since September 2010. The typical home buyer borrowed just under £160,000, a slightly increased loan to income ratio.
In our opinion, all three of these stories reflect a growing upwards trend in the property market. For those looking to invest, this is a great time with plenty of choice of mortgage products available and property prices still stable. At the same time, despite the number of mortgage products increasing, many still require a sizeable deposit which will keep a large proportion of people in the rental market for years to come.
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