Jun
27
2013

“A property explosion” what is all the hype about?

Experian’s most recent insight shows a surge in the number of properties worth over £500k coming onto the market. The sharp rise was driven by London and the West Midlands, each of which registered an increase of about 26 per cent in the number of homes in the £500k or more bracket.

Overall, the number of properties listed for sale rose by 9.7 per cent year on year, compared with a fall of 4 per cent the previous year.

Your property can often be the biggest investment that you will make, and the same is true for your customers. To help you understand the financial needs of homeowners better, it is worth keeping an eye on property trends, insights and the market. Recently, our property experts at Experian have put together all our property insights into one place, which can be found here.

Jonathan Westley, Managing Director of Consumer Information Services at Experian UK & Ireland, comments: “The uplift in more expensive houses coming onto the market for sale was seen in most parts of the country and not just in the London area as would have been expected.  While it suggests a growing confidence among sellers who feel now is a better time to sell than this time last year, it does also highlight a need for a better understanding of homeowners, as some may in fact be experiencing financial pressures.

“Monitoring the changing face of the UK’s property market is essential for any financial services, utility or insurance company in order to really understand a person’s equity position for credit strategies.”

The rental market, by contrast, registered something of a slowdown, with an annual rise in properties to let of just 2.8 per cent. The previous year it grew by 5.6 per cent. One area which saw very rapid growth was the market for rental properties with four or more bedrooms, which grew by 17.2 per cent.

Location, location, location                           

The analysis indicates that across the UK a number of fresh sellers are coming to the market. Scotland saw the biggest surge in properties being marketed for sale in Q1 2013, up 20.0 per cent on Q1 2012, closely followed by the West Midlands which saw the number of new listings rise by 18.0 per cent. The North East and Outer Met were the only regions to buck the trend, with the number of properties for sale falling by 4.2 per cent and 0.4 per cent in Q1 2013 compared to the same quarter in 2012.

While the pace of growth in the rental marketplace slowed overall, London continued to see a notable uplift in the number of homes to let, increasing by 27.7 per cent from Q1 2012 to Q1 2013.

Property type

Detached houses are the most frequent house type listed for sale across the UK, with a total of 49,461 detached houses for sale in the first quarter of 2013 compared to 43,796 in the same period last year, an increase of 13.0 per cent. Three bedroom properties were the most common size of home on the resale market, accounting for 38.82 per cent of all new listings.

To keep abreast of property trends, insights and tips visit our dedicated property site www.experian.co.uk/property-data

Do you think this trend is here to stay? What are your thoughts on the current property market? Please leave your comments below, I’d love to hear your views…

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