The total national change in prices as of August 2014 is 12.9 percent which is down from 17 percent in May 2014, but significantly up from the same period in 2013. London properties have increased the most with Central City London showing a 60.9 percent increase. All of London is showing similar property price increases.
There is now a 10 percent less property availability problem at estate agency branches compared to this time in 2013. The average change in September prices over the past ten years has been a decrease of 0.5% which is very different from what is being seen in September 2014.
A popular website generated over 4 million enquiries in August which is the second highest level ever recorded. Only January was slightly higher, but statistically insignificant. The amazing indicator is buyers used their mobile devices more than 45 percent in August compared to last August. Home buyers ability to be constantly in touch with estate agent sources and websites indicates that the UK property sales will now pick up quickly.
There is some pent up demand because of the decrease in properties for sale. Every estate agency branch is scrambling for new listings, but the availability may not be forthcoming. Many property owners sold when prices started to rise several months ago.
Since the issue of Scottish independance is settled, there is far less uncertainty in the UK property market which means the prices will remain stable. Housing markets respond negatively to uncertainty.
However, the economics of the hectic sales pace in the first half of the year will give bankers, mortgage funding sources, lenders, and regulators good reasons to ask questions about the value of the properties, affordability for the buyers and sustainability in prices. The latest data on upwards pressure on interest rates, and the availability of wholesale funding for lenders are potentially negative influences on consumer interest in making a major home purchase.
There is no measure of consumer sentiment at the moment regarding estate prices being good value. This is relatively easy to measure, and the results are not slow to materialize if there is a change.