Housing market activity This summer has seen a notable increase compared to the same time compared to last year, new research has found, as a recent change in hostage strength rules has an immediate effect.
Buyer’s demand is 11 percent higher Compared to a year ago, the data from the Zopla show, equal to an eight percent increase in the agreed sales.
The property website says that sales increase is with slowing down the increase in house prices, showing that it has reduced its price forecast for 2025.
This will appear to calm the concerns that the relaxed hostage strength rules will increase the house PricesWhich were growing more rapidly at the beginning of the year.
Many lenders now have Loose their strength rules To enable customers to borrow more guidelines declared by Bank of England in early July.
They mean person Banks And construction society can offer more high debt-to-II HostageWhich is 4.5 times more than the borrower’s annual earnings.
Later last week the change made by the Financial Conduct Authority, means home Buyers Now 20 percent can borrow more and keep the same rate.
Richard Donel, Executive Director of Zopla, told Independent: “Changes for hostage loans help to improve buyers who have more likely to buy – they will not open flood doors and pursue house prices that are still slow.
“Borrowers still have to prove that they can spend more than paying, but low amounts such as about 8-7 percent before 8-9 percent when they pay the mortgage rate, they can be an average of 4.5%. Other borrowings still apply.”
Accommodation Experts also say that high stamp duty cost is also decreasing in average prices, with buyers “this additional cost is reflected in what they pay.”
Stamp duty in early April is likely to increase the price increase in the price of any slow house for most buyers. For the first time buyers will now have to pay stamp duty when purchasing a house up to £ 300,000 below the previous limit of £ 425,000.
For the owners of the second property, the threshold increased to £ 125,000. For all buyers, the banded rates begin at five percent, which increases by 12 percent for the most expensive properties.
Mr. Donnel said: “In the beginning of the year, we had predicted that home prices will increase at the bottom of forecast for inflation of house prices. The prices of the house will increase. Prices are more than 2025, one percent more than half -level forecasting.
“More supply of homes for sales and mortgage rates is more than expected, the major causes of weak growth. The price inflation is not a bad thing, unless people have enough market confidence to list their homes and make bids to buy houses.”