Housing Sector Sees Positive June Data
The housing sector saw some much needed positive news for the month of June. The LSL Property Services Group saw housing activity rise 20 per cent from May to June. Another encouraging statistic came with that; over 63,000 homes were sold just last month.
This figure of 63,000 homes sold needs to be kept in perspective because May was such a quiet, slow month for sales. This is attributed to the uncertain news surrounding the general election. Nonetheless, it does indicate buyers and sellers coming together with more favorable pricing. LSL says prices fell slightly in June but it expects them to lead off and for a more normal market to start surfacing. A normal functioning property market is needed for brokers with the Bank of England base rate continuing to stifle remortgages. LSL research shows remortgaging accounting for less than 30 per cent of business for practically half of all brokers. There is little incentive for brokers already on a slow standard variable rate. But, rate alone is not the only reason for remortgaging. Some homeowners are just looking for the stability of a fixed rate.