Peter Alan sales figures show recovery in housing market
By Effective Communication
FRESH evidence of a continuing and sustained recovery in the South Wales housing market has been revealed by the leading player in the region’s property sales sector.
Latest house sales figures from South Wales’ largest estate agents, Peter Alan, shows that numbers of property completions are on the rise for the fifth consecutive month.
Mick McGuire, Managing Director of Peter Alan, said: “Last year confidence in housing fell to an all-time low during the second half of the year. This year has started much better, with sales more than double the levels experienced in the second half of last year.”
Sales from the company’s 23 branches for April were 32 per cent higher than in the same month last year – and figures so far for May have shown a further surge in sales.
With 4,000 properties currently on their books for sale or rent, Peter Alan are now on average recording a house sale every hour of the working week, a marked increase on the four sales a day achieved during the final quarter of last year when the housing market was at its lowest point.
April sales figures at Peter Alan – owned by Principality Building Society – were the best for 13 months. As a result of these extra sales, the value of properties in the sales pipeline has doubled to more than £60m, representing more than £1m worth of fees for the business.
And with activity levels continuing to rise, Peter Alan are now taking on new staff – another strong indication that the Group is confident that the recovery in the market will be sustained.
So far this year, 17 new valuers, sales negotiators and surveyors have been recruited, with the business still looking to employ an additional eight staff to cope with increased demand from buyers and sellers.
Mr McGuire believes that while activity levels are still well below their 2006 peak there are now clear signs of continued sustained recovery and growth in the sector.
“We are seeing sales slowly but surely picking up with the numbers of completions increasing each month, and the longer it continues the more confident we are that housing has turned the corner,” he said.
“In terms of mortgage costs, homes are more affordable today than they have been for seven years and this is creating an increase in demand for housing right across the sector, from first and second time buyers right through to investors. Set against this rising demand, there has been a dramatic fall in the supply of new-build housing, with the National Federation of House Builders reporting the lowest level of peacetime house building since the First World War.
“Given the fact that Wales already has a rising shortfall in housing supply compared to demand – estimated to be in the region of 40,000 – that growing demand supply shortfall should help to underpin house prices rather sooner than economists predict.”
Mr McGuire added: “There is also the benefit of a pent-up demand for housing from first-time buyers who for several years have had to rent due to lack of affordability. However, this is being tempered by the fact that mortgages are not as available as they were and larger deposits are now needed.
“With the housing market already improving each week this year and the recent Government steps to improve the supply of mortgage credit, the outlook for the housing market recovery is set fair. Budget changes to pensions for high earners are also encouraging increased investment in buy-to-let property.
“These investors were active buyers in our all-Wales auction last month when 86 per cent of lots were sold.
“The steady increase in demand from house buyers against the backdrop of a constrained and reduced supply of new homes will help house prices to stabilise and I would anticipate this stabilisation to occur before the end of the year.
“I am not saying that house prices have bottomed out just yet, but I believe they will within the next six months. We are seeing a continued and sustained pick-up in the market fuelled by a significant return of both first time buyers, who can now afford to buy, and the returning confidence of existing property owners.”
Tags: housing market, Mick McGuire, Peter Alan, Principality Building Society
