Low interest rates keep property demand high

Low interest rates keep property demand high

More people in the UK continue to be able to buy their own homes, with low interest rates and very attractive mortgage products making it possible for buyers to find themselves an affordable purchase. 

The second half of 2015, according to the latest official data released by HMRC, has helped to bring more and more buyers into the property market as they seek good deals. 

It had been expected at the start of the year that we would see the base rate climb at some point from its all-time low of 0.5 per cent, but as this failed to materialise throughout the year, a growing number of Brits grew increasingly confident about getting themselves onto the ladder with a cheaper mortgage. 

The HMRC data shows that in October of this year there were 105,490 residential and 10,160 non-residential transactions. This total for residential purchases in particular is very impressive, as it marks the fifth month in a row that there have been more than 100,000 homes sold in the UK. 

There were slightly fewer sales in October than there were in September, dropping 0.2 per cent month on month. But sales are still far higher than they were in the first half of the year, and well ahead of what we were experiencing in 2014. On an annual basis, there was a 6.3 per cent rise to the end of October in terms of the number of transactions. 

Peter Rollings, CEO of Marsh & Parsons, said the second half of 2015 has been in a whole different league to the first six months of the year, with transactions really having picked up pace across the past few months. 

"There has been a slight correction on a monthly basis, but we’re still head and shoulders above a year ago, as buyers ride high on the wave of low interest rates and attractive mortgage products," he said.