“Record low interest rates and lenders’ eagerness to hit their year-end targets have both been key factors in the surge of agreed property sales, along with the improving economy. The backdrop of a potential base rate rise in the future is also likely to propel more eager buyers to the market before the end of 2015.
“It’s especially encouraging for first time buyers to see credit conditions improving – a second piece of good news to accompany this week’s government pledge to get private sector developers on board with building affordable homes for purchase.
“It looks like the rest of the year will keep conveyancers busy, with properties flying off the shelves almost as fast as they appear on the market. On the flip side, price increases and a supply shortage in both homeowner and rental markets continue to cast a shadow over the long term prospects for growth in property activity.
“The reality is that the government will need a lot more than its Starter Homes initiative to fulfil the promise of its homeownership agenda.”