UK house sales and mortgage approvals rose in September
UK house sales and mortgage approvals rose in September, however, there is still a shortage of properties on the market.
Property prices also rose, albeit at a slower pace compared to previous months.
According to the Royal Institution of Chartered Surveyors (RICS), house sales in September rose at the fastest rate since May 2014 – mainly because of a surge in sales in Scotland and northern and eastern England.
The increasing availability of mortgage finance also contributed to the rise.
“Unless the stock being sold is replenished there is a limit to how sustainable this modest improvement in market turnover will prove to be,” Simon Rubinsohn, RICS chief economist, said.
“Unfortunately, the indications are that we are locked in a cycle where the lack of available properties on agents’ books is itself deterring some potential vendors from thinking about putting their own property on the market.”
Prime Minister David Cameron said during his speech at the Conservative conference on Wednesday that the party wants to change Whitehall and town hall planning rules to encourage developers to build more affordable housing for new homebuyers.
Difficult planning laws has been cited by builders as one of the major obstacles to new housing development, in addition to the shortage of skilled workers.
Property prices are expected to continue climbing in the UK, according to Rubinsohn. He welcomed Cameron’s plans but said that the government should adopt a more “holistic” approach, such as employing measures to boost the rental sector.
The RICS recently increased its house price inflation forecast from 3 percent to 6 percent for 2015.