House sales saw a boost in September as more attractive mortgage rates stimulated the market, a leading property website revealed.
Some 25% more deals were struck compared to the same period last year, according to Zoopla's figures which compare the four weeks up to September 22 with the same time in 2017. Sellers are becoming bolder, too – Zoopla reports nearly one in three (32%) properties advertised are being marketed as "chain free".
This trend is especially noticeable in coastal and rural spots like Truro in Cornwall and Torquay in Devon, where the number of properties up for sale is soaring, hinting that second home owners are keen to cash in. Zoopla says this surge in available property signals a growing confidence amongst sellers, driven by dipping mortgage rates.
Landlords and holiday home owners might also be deciding to sell due to possible tax changes on second properties that might be brought in the autumn Budget, they added. Sir Keir Starmer has said the Autumn Buget will be 'painful'.
Two-bedroom houses top the list for "chain free" options, with a substantial 41% of such dwellings currently on offer without an onward chain on Zoopla. Properties recently rented out makeup 13% of sales listings on the site.
Despite more property choice, affordability remains is preventing house price growth, particularly down south, says Zoopla. With a greater selection of homes, price increases are likely to be moderated, giving buyers a bit of breathing space in the near future.
Not all properties on the market are newcomers; Zoopla's figures reveal that a fifth of homes currently for sale had been listed at some point in the last two years. Zoopla emphasises the importance of setting the right price to entice buyers.
Over a third (37%) of property sales are being agreed upon at more than 5% below the initial asking price. Although this is an improvement from the previous year, it indicates that low house price growth may be on the horizon, the report suggests.
Richard Donnell, executive director at Zoopla, commented: "Lower mortgage rates are delivering a much needed confidence boost to homeowners, many of whom have sat on the sidelines over the last two years. Market activity is up across the board and expectations of lower borrowing costs will continue to bring buyers and sellers into the market."
He also noted: "Speculation over possible tax changes in the Budget and the impact of previous tax changes are supporting the expansion in home for sale."
Meanwhile, Sarah Coles, head of personal finance at Hargreaves Lansdown, pointed out that certain areas popular with second home owners could see council tax hikes on holiday homes. She added: "When they come to sell, there’s already capital gains tax to pay on any gains on second properties... but the Budget could make this bite harder."
Ms Coles added: "UK investors have typically been drawn to property. People feel it’s something they understand because they own their own home already. However, if you’re considering investing in property, the tax position alone should make you think twice."
According to property website Rightmove, Carluke in Lanarkshire, Scotland, is the fastest-selling property market in Britain this year, with homes selling in an average of 15 days. Giffnock in Glasgow comes in second, with properties finding buyers in 16 days, followed by Uddingston in Glasgow, which takes 17 days on average.
In contrast, central London areas such as Knightsbridge, Chelsea, and Victoria are the slowest markets, taking 135, 108, and 100 days respectively to find a buyer. Rightmove attributes this to the high property prices in these "premium" locations, which attract fewer mass-market buyers.
Tim Bannister, a property expert at Rightmove, noted: "In London, commuter areas such as Walthamstow and Dagenham are leading the way in finding buyers the quickest, likely driven by well-connected transport links and more affordable prices compared to central zones. By contrast, more exclusive central locations like Knightsbridge and Chelsea are taking longer to find buyers, as these high-end markets typically move at a different pace."
Housing markets outside the capital are finding speeds vary, with Brixham in Devon taking 118 days on average to secure a buyer, Skegness in Lincolnshire at 115 days, Sandown on the Isle of Wight clocking 109 days, and Abergele in north Wales averaging 106 days, based on Rightmove's data. The nationwide average to find a buyer stands at 60 days.
When breaking it down by property type, terraced houses are being snapped up quickest with an average of 51 days, while detached properties are on the market for longer, typically around 73 days, added Rightmove. Douglas Nicol, director at Nicol Estate Agents in Giffnock, has commented: "The local market in Giffnock remains buoyant, with demand often outstripping supply."
Meanwhile, Nathan Emerson, the chief executive of Propertymark, highlighted a positive trend in mortgage offerings, stating: "We are starting to see early signs of lenders having the confidence to shift up the landscape by offering sub-4% mortgage deals in some circumstances, which of course sits firmly below the current base rate and points towards future confidence within the economy."
