Searches for housing on the rise

Surveyors predict that a shift in the "mood music" of the housing market will lead to an increase in property sales in the autumn.

However, according to a poll conducted by real estate website Zoopla, some of those purchasers may submit an offer following a quick viewing.

5% of the customers who were surveyed stated that they had browsed around for less than twenty minutes before placing their offer.

This comes as the largest mortgage lender in the UK predicted that home prices would probably continue to grow throughout the year.

As to the Royal Institute of Chartered Surveyors (RICS), sales expectations are expected to soar to their highest point since the beginning of 2020.

Based on its monthly report, surveyors anticipate a rise in activity over the following three months, with a greater number forecasting an increase in the upcoming year.

According to Simon Rubinsohn, chief economist of RICS, the Bank of England's interest rate decrease, which was the first in four years, along with government promises to construct more homes had "shifted the mood music in the sales market".

Although an increase in buyer demand is anticipated, the quantity of properties listed on the market may not keep up with this demand.

More competition between property searchers and increased prices might be the outcome.

According to Zoopla's poll, 20% of respondents who had made a purchase within the previous five years made an offer following a 20-minute viewing session.

While the average was 49 minutes, some people looked around for less than five minutes.

Lockdown limitations during the epidemic meant that some purchasers were placing bids after just inspecting the property virtually.

Sales increased during that period, especially in rural and coastal locations, as a result of the competition for indoor and outdoor space as well as stamp duty incentives.

Since then, sales have been hindered by increased mortgage rates.

There are indications of increased lender competition, though, and lower overall borrowing costs are anticipated.

Reduced mortgage rates are "encouraging" for first-time buyers, people moving up the housing ladder, and those refinancing, according to a statement released on Wednesday by Halifax, a division of Lloyds Banking Group.

However, it cautioned that purchasers were still faced with difficulties due to affordability issues and a dearth of accessible houses.

The Bank of England dropped interest rates last week to 5%, marking the first fall since the pandemic's beginning in March 2020. However, the governor of the bank issued a warning, saying that future reductions were not likely.

(Sources: bbc.co.uk)