Activity within the UK property market seems to be on the rise of late as the number of property transactions in 2017 were at their highest since 2007.
Recent figures from Lloyds Bank have revealed that just over 370,000 people moved home last year, which is not only a 2% increase on the number of transactions from the previous year but also the most amount of transactions seen in a decade before the financial crisis.
While this is the highest level of activity seen in quite some time, it is still a way off the reported 653,000 movers seen in 2007; however, the growth in 2017 is definitely a positive sign, amongst the current economic uncertainty.
The research from Lloyds bank also showed that the average deposit broke &100,000 for the first time in 2017 and the average in London almost surpassed &200,000.
The average price paid for a home in 2017 stood at &296,731, a &6,000 increase on the figure seen the previous year.
According to Lloyds Bank, there are a few factors that may be contributing to the rise in activity such as low mortgage rates and high employment levels, making the process more affordable for buyers and the continuous growth of house prices over recent years have provided vendors with a substantial amount of equity.
Every region of the UK, except for greater London, saw an increase in property transactions with the south-east topping the table of movers with 65,400 people deciding to trade homes last year.
Mortgage products director at Lloyds Bank, Andrew Mason, believes that this increase in activity is due to rising house prices.
Mason commented, “House price increases will have boosted equity levels for many homeowners, enabling movement along the housing ladder…
“Taking advantage of increased equity levels by putting down a bigger deposit can really make a big difference towards what home movers can afford. It can be the difference between a good home and the right home.”
CEO of Emoov.co.uk, Russell Quirk also spoke on the latest statistics, stating that it should not be overlooked just how positive of a sign it is that first-time buyers are returning to the market.
Quirk said “While a boost in equity will have also aided many home movers to take the next step, perhaps the most important change the market has seen, is the increasing number of first-time buyers. This is particularly encouraging when you consider the huge barrier of unaffordability not just where the price of a property is concerned, but also the initial deposit required to secure it.
"Over the last year or so, market uncertainty has deterred many from committing to a sale in fear of cashing out too early on their existing asset. It’s this increasing level of first-time buyer demand that has kept the market ticking over as a result of their aspiration to become homeowners, not their desire to profit from their existing home.”