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UK housing sales hit a three-and-a-half year peak

The UK housing market continues to flourish as home sales hit a three year high, surveyors have reported.

The latest figures, taken from chartered surveyors, show that the housing market is continuing on its road to recovery despite the fact that the figures are still historically low. An average of 17.9 sales was made from February to May of this year which is the highest number of sales made since January 2010.

These figures suggest that the UK property market is consistently growing and may even lead to wider economic growth. Surveyors also reported growth outside of London, with 5% of surveyors stating that house prices were increasing in their areas.

The growth is thought to be partly due to the Funding for Lending scheme which was introduced to encourage lenders to increase their mortgage customer base. This scheme works by providing funding to banks and building societies from the Bank of England on the condition that they lend to more UK households and businesses. The scheme has allowed lenders to reduce their mortgage rates significantly which has encouraged more people to jump on the property ladder.

Although the housing market has improved, there is still a long way to go before it fully recovers from the economic downscale. Many fear that government involvement could actually harm the housing market. Due to the increase in demand from people wishing to purchase property, property prices have risen. Many feel that the recent rise in house prices could deter many from entering the property market but this remains to be seen. May was the best month for the housing market as many new buyers decided to view property which resulted in several more transactions than in previous months.

The growing stability of the housing market has also affected other areas of the economy in a positive manner. The number of job openings rose between April and May as many employers began to gain confidence in the more stable financial markets.

The increase in house sales looks to be the first of many steps towards a positive economic future for the UK. More lenders are lowering their mortgage rates to fight off the competition and more government schemes are becoming available to encourage people to buy their homes rather than rent. Confidence is growing in the housing sector which is encouraging more and more first time buyers to make transactions.

Buying Houses since 1972