Housing market shows signs of volatility
Posted: 03 Jul 2006 10:32:54 GMT
The property market in the UK has enjoyed a period of relative buoyancy in the first half of 2006, but a new report has also observed evidence of fragility.
When compared with the same period last year, home sales increased by 12 per cent in the first half of the year but this statistic reportedly masks an element of monthly volatility.
Research from Your Move shows that property transactions fell by 11 per cent in June from the previous month, although this was affected in part by the England v Ecuador match on June 25th when viewings slumped by 38 per cent.
On the other hand, there was an impressive 24 per cent increase in the number of new buyers registering in June and the conclusion of the World Cup is set to boost this figure still further.
One piece of news that should encourage buyers and sellers alike is that the market also appears to operating more efficiently this year, with a 3.7 per cent fall in the number of transactions that collapse.
David Newnes, managing director of Your Move, said, "The market has been undoubtedly strong this year, but has experienced volatility month on month due to a number of external factors including the weather, stock market downturns and the World Cup."
Mr Newnes also criticised the anti-Hip campaign from the Conservative Party, which he claims is undermining confidence in the future health of the market. He also called on the Bank of England to resist the temptation to increase interest rates.