Households put off moving by mortgage fees and Stamp Duty

Households put off moving by mortgage fees and Stamp Duty

Buyer demand for property has slipped this month, while supply has improved, Hometrack reported this morning.

It said this was a reversal of the situation that has been a key feature of the market in recent months.

In July there was a 2.4% increase in stock, while demand grew by just 1% – down from a 1.6% rise in the number of new applicants last month and a 2.5% rise in May.

House prices, says Hometrack, grew this month by only 0.3%.

Homes are taking less time to sell, at 8.2 weeks, and are achieving 94.4% of their asking prices.

Hometrack said: “Whether 2013 turns out to be the year with the highest increase in house prices since the start of the downturn will depend on the level to which new buyers enter the market in the autumn.”

Despite the improvement in supply and the softening of demand, Hometrack says that the lack of homes for sale remains a key feature of the market.

The Hometrack report says: “Would-be sellers are waiting to find something before putting their home on the market.

“Agents also report that many households on attractive mortgage rates are put off moving by Stamp Duty and mortgage application costs.”