Spring Season Crucial for 2012 Market
The Spring housing market is always important, but there are extra reasons to make it count this year. First and foremost, the UK will be gripped by Olympic fever over the summer, with uncertain impacts on market activity. We anticipate stronger activity in both the sales and lettings markets as movers seek to complete on transactions prior to the Games. While this effect will be most pronounced in London, the knock-on effects will be more widely distributed.
Secondly, mortgage markets are beginning to price in higher margins and are retaining tight controls on lending. This is encouraging remortgaging activity and movers are thinking about making a decision as soon as possible to avoid potential price increases.
Finally, economic stability is becoming closer to a reality for the UK and with that there is likely to be an uptick in demand for housing. With market supply remaining largely subdued at a national level and new home construction also constrained, some markets will begin to feel price pressure towards the end of 2012. The impetus to remain ahead of any upward price movement is likely to build as we head towards the summer months.
Read the latest Residential Market Update