UK property sales off to a fast start

• Latest figures strengthen market’s confidence

With Q1 figures now in, they illustrate a strong beginning for the residential sales market in 2010. Now could be the perfect time to sell for those pondering home owners who’ve been sitting on the fence for the last twelve months. Basic economics tells us that when there is a high demand in a market place it leads to an increase in pricing. Luckily this is now the case for the UK property market with prices now firmly stabilised after the last two years of turmoil and in some regions have even reached the peak levels of 2007 before the downturn.

It has been reported that a 21% year on year increase of new applicants registering for properties was seen, which includes the activities in the London properties area. Furthermore, this naturally led to an increase of transactions and in March they rose by 27% versus the same period in 2009.

So what has led to this new confidence? Well, the UK market has become increasingly attractive to overseas investors due to the weak pound and low interest rates. Also, the fact that the prices have been steadily increasing over the last year has given the market fresh buoyancy.

As aforementioned there has been an increase in demand (January instruction levels were up 23%) and in the case of the UK market there has been a real shortage of properties for sale. However, after careful analysis of the first quarter’s figures, the supply problem should become less of an issue as more property is now entering the market and stock available is back on a par with 2009 levels.

Essentially the above variables such as the trend in pricing, the abundance of stock and the increasing level of transactions all point to the UK sales market limbering up and striding ahead for 2010. Real estate sales offices expect further success over the course of the year due to this renewed confidence in the property market. It is widely known that an important factor in the recovery of any market is a backbone of self-belief. If 2010 continues the on the trend of financial stability with no more economic blows, it is reasonable to expect a more fruitful year for property companies and home-owners alike.