August Property Activity Up

August Property Activity Up.

Reports from Rightmove and other property related organisations such as Chartered Surveyors suggest that activity in the residential property market, whilst down in the August holiday period by 0.8%, is still at a record high for August given that the average property activity in August usually falls by around 1.5%.

In short, there have been a record number of property transactions for August 2015.

We suggest the cause of this is a fear of interest rate rises meaning that people are looking to complete on mortgage applications sooner rather than later. In addition, there is a reduced number of people putting their homes on the market meaning that demand is outstripping supply.

Whilst the government have committed to building 200,000 affordable homes in the next five years, you have to look at the numbers:

the population of London is set to expand by around another 1 million people within the next five years

the population of the United Kingdom as a whole is set to expand by around 10 million people in the next 10 to 15 years.

We will have further property recessions, with people moving into negative equity if they buy at the height of the market, however long-term demand is going to exceed supply for the next 15 years so expect your home to significantly increase in value despite minor blips on the way.