Property Sales within the United Kingdom hit a seven year high in 2014 when they rose by 14% last year to 1.22 million.
According to figures produced by HM Revenue and Customs (HMRC), every region across the United Kingdom saw growth although in the last few months of the year, sales eased off as did price increases although this did little to prevent the high rate of growth annually. Mortgage lenders predict that sales may well drop off slightly this year but still maintain a healthy rate at 1.18 million.
In the aftermath of the global economic crisis, British house sales slumped massively seeing sales of just 858,000 in 2009 as mortgage lenders turned off the ‘mortgage tap’ and were reluctant to lend to anyone with the banks in crisis.
This seems to be firmly behind the country now as employment continues to grow and more and more people have greater faith in the economic recovery. Boosted by government initiatives like Funding for Lending and Help to Buy, lending and house purchases have risen steadily and the HMRC commented on this trend when they said:
“Since December 2008, there has been a slow but steady upward trend in the seasonally adjusted count. This trend grew at a faster rate between April 2013 and February 2014; however since then the rate has declined slightly.”
A recent slowdown in sales appears to have also been affecting mortgage approvals as the Royal Institution of Chartered Surveyors (Rics) said earlier this month that the number of new properties being listed for sale by its members had fallen for 10 of the last 12 months. This has impacted the number of potential buyers entering the market as this has slowly dropped for the past six months in a row.
With increasing employment and wage increases on the horizon, along with the fall in price increases as well, this is not expected to last long as there is perceived to be a pent up desire from the recession years which is predicted to shine through as the economy gains more and more strength.
A rise in house sales themselves would be good news for the economy of the United Kingdom as the property market also starts to regain its stride after a rocky few years but government backing and support has seen both construction and retail picking up pace.
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