Indicators are suggesting a market buzzing with activity – but while home-owners are increasingly keen to move, there is growing anxiety among the public.
Mortgage funding is as tight as three months ago or even tighter, say nearly eight in ten would-be home movers.
A survey of 5,442 home owners by Zoopla underlines other worries over job losses and interest rate hikes.
Although 78% of the sample think property prices will rise over the next six months, the proportion has fallen from 81% three months ago.
While 50% say that mortgages are as difficult to obtain as three months ago, 27% say it has actually become harder. One in three (34%) cite mortgage availability as the biggest continued threat to the housing mortgage.
According to new figures from Mortgage Brain, a mortgage sourcing system, there are now 6,009 mortgage products available. It is the first time since 2008 that the number of mortgages has broken the 6,000 barrier.
The figure is up 4% from 5,803 at the end of May. This time last year, there were just 2,413 mortgages. But even today’s new figure remains a fraction of availability at the height of the market, in August 2007, when there were over 30,000 mortgage products available.
The Zoopla survey also shows that a potential rise in interest rates is a major worry for 25% while job losses in the public sector concern 21%.
Nick Leeming, commercial director of Zoopla, said: “The fear remains that the revival in the housing market will be derailed unless the banks make a concerted effort to increase lending.”
Property firm CB Richard Ellis also warned that the sales market remains constrained by the lack of mortgage finance.
Jennet Siebrits, head of residential research, said: “First-time buyers require huge deposits to get a foot on the housing ladder and there is no sign of banks relaxing lending in the near future.
“Tougher times are ahead as the various governmental financing support schemes draw to a close and there becomes a growing need for lenders to refinance assets currently protected under their umbrella.”
Yet, as more houses have piled on to the market, surveyors say they are extremely busy.
The number of residential property valuations in June was 20% higher in June than in May, according to Connells Survey and Valuation. This was an annual increase of 16%.
The strong performance of the valuations market in June was underpinned by the increasing number of home owners looking to move.
The number of valuations for home movers (as opposed to first-time buyers and for remortgage purposes) was up 6% month-on-month, following a rise of 26% in May.
Ross Bowen, managing director of Connells Survey and Valuation, said: “Summer has brought a seasonal uplift in activity. But this has been exaggerated by the decision to discard HIPs.
“In June, there was a strong bounce in the number of properties hitting the market and it’s not just speculative sellers testing the waters. Thousands of home owners are no longer trapped in negative equity and are looking to move up the property ladder.”
There was also a strong annual improvement in the number of valuations for buy-to-let investors looking to add to their portfolios (plus 12%). Buy-to-let valuations also increased by 10% in June compared to May.
The first-time buyer market did not show such strong progress. Although there was a seasonal increase in valuations, jumping by 36% compared to May, this was only a slight improvement on June 2009 (plus 1%).
