09
Nov
House Sales Up 19%
The Financial Times reports that a survey by Persimon, the UK’s second largest house builder, shows an incease of 19% in house sales over this time last year. This is goos news for people selling their house as it shows the market is moving.
The group attributed the improvement to an increase in mortgage availability and the introduction of a government-sponsored incentive scheme to encourage first-time buyers, which came into force in July.
Private house sales were up 4 per cent in July and August while average selling prices remained broadly flat at just under the £169,000 recorded last year.
The York-based housebuilder said it had sold the 9,300 houses it is building this year, and that forward sales for next year were looking strong, with £460m of sales booked – a 7 per cent increase over this time last year.
“It’s a bounce back for the group as a whole but slightly stronger in the north which is pleasing for us,” said Mike Farley, chief executive.
Shrugging off the gloom in the eurozone and the economic turmoil, the group said cancellation rates were at historic lows of 18 per cent. “The man on the street is not worried about Greek debt. The only worry for us is mortgage availability and this has gradually improved,” Mr Farley said.
He went on to say that is was saving up for a deposit rather than the affordability of a mortgage that was holding the market back as well as adding that it was still cheaper to buy than rent in most parts of the country.