Purchasing instructions forging ahead
Compared to the previous three months the second quarter purchase instructions increased by 104%, with remortgage instructions improving by 34%.
During the first quarter one there was almost a 50/50 split between remortgage and purchase business.
However during the second quarter there has been a marked shift in favour of purchases which accounted for over a third more instructions.
Harpal Singh, managing director of Broker Conveyancing, said: “At the end of last quarter we thought remortgage and purchase business levels would stay roughly equal as we moved into 2013 but that hasn’t been the case.
“It has been the purchase market which has seen significant growth, and while the remortgage market has grown by a third, this is nothing compared to over 100% growth for purchases.
“Clearly, the property market is in a positive place at present and we are undoubtedly seeing the benefits of measures such as the Funding for Lending Scheme.”
Purchase instructions also appear to be higher due to a growth in both the first-time buyer and buy-to-let sectors.
Broker Conveyancing said it believes the growth in first-timer buyers, plus the growing attractiveness of the buy-to-let market, is allowing the formation of far more property chains than 12 months ago and delivering a knock-on increase for second steppers and those above them on the ladder.
Broker Conveyancing’s total number of instructions during the three-month period (April-June) also increased by over 74% on the previous three months.
The firm puts this down to a number of factors including a growing user base – 65% of all registered users have now used the site at least once – attracted by competitively-priced products, the ability to be paid on exchange, plus a unique loyalty bonus for each piece of business completed.
Broker Conveyancing says these platform benefits plus the increase in activity in both the remortgage and purchase markets mean instruction levels are likely to continue rising over the course of the Summer and beyond.