25th June 2013
There has been a surge in properties worth more than £500,000 coming on to the UK housing market according to information services company Experian.
It says that in the first quarter of 2013, the market saw a 19.1% increase in this type of property, compared to the same quarter in 2012. The increase was led mainly by London and the West Midlands, each seeing around 26% increase in homes falling into the highest price band.
The analysis shows that across the UK, the overall number of properties listed for sale was up by 13.0% compared with Q4 2012 and by 9.7% from Q1 2012. This revival follows a period of decline, with the number of properties marketed for sale falling by 4.0% in 2012.
Meanwhile, the rental market after a strong year of growth in 2012 increasing by 5.6% compared to 2011, began to stabilise with 2.8% growth during the first three months of this year.
Despite the slowdown in growth, the rental market has seen an explosion in large properties with four or more bedrooms. During Q1 2013, properties with four bedrooms or more increased by 17.2%.
Jonathan Westley, managing director of Consumer Information Services at Experian UK & Ireland, says: “The uplift in more expensive houses coming onto the market for sale was seen in most parts of the country and not just in the London area as would have been expected. While it suggests a growing confidence among sellers who feel now is a better time to sell than this time last year, it does also highlight a need for a better understanding of homeowners, as some may in fact be experiencing financial pressures.”
While properties for sale at over £500,000 increased across the UK, Wales and the North East were the only areas to see fewer properties falling into this price band – down 6.8% and 1.1% respectively, compared to Q1 2012.
The number of properties valued between £250,000 and £500,000 also increased by 11% in the same period. However, the majority of homes for sale on the UK market in Q1 2013 were valued between £100,000 and £250,000, with 51.4% of properties for sale falling into this price bracket.
Scotland saw the biggest surge in properties being marketed for sale in Q1 2013, up 20.0% on Q1 2012, closely followed by the West Midlands which saw the number of new listings rise by 18.0%. The North East and Outer Met were the only regions to buck the trend, with the number of properties for sale falling by 4.2% and 0.4% in Q1 2013 compared to the same quarter in 2012.
While the pace of growth in the rental marketplace slowed overall, London continued to see a notable uplift in the number of homes to let, increasing by 27.7% from Q1 2012 to Q1 2013. The capital also saw a big difference in the number of rentals versus sale properties added to the market in the first quarter. There were 45,659 properties to let, over double the number of properties up for sale (21,452).
Detached houses are the most frequent house type listed for sale across the UK, with a total of 49,461 detached houses for sale in the first quarter of 2013 compared to 43,796 in the same period last year, an increase of 13.0%. Three bedroom properties were the most common size of home on the resale market, accounting for 38.82% of all new listings.
In the rental market, flats took the lion’s share in Q1 2013, accounting for almost 45% of all rental properties. In London, this figure rises, with this type of property accounting for 74% of the capital’s rental market. However, terraced houses saw the biggest increase from Q1 2012 to Q1 2013 – up 17.9%. In particular, terraced houses with four or more bedrooms to rent increased by 23.2%.