Savills: Talk of a bubble is premature
Cook warned delegates at the inaugural astl conference yesterday that whilst the market is moving in the right direction there it still has some way to go.
He said: “When you look at the divergence between London and the rest of the UK you can see that there won’t be, and isn’t, a bubble.
“UK housing transactions should be around 120,000 a month but at the moment we are running at around 55% or 65% of that.
“Transaction levels are ticking up but it can’t all be attributed to loans. “
Cook also told of a fundamental shift in the market towards cash purchases which he said are now at “an abnormally high level”.
He said: “The market is no longer funded by mortgage debt. Equity is the biggest funder of the market at present.”
In the first half of this year more than a third (35%) of house sales in England and Wales were made by cash buyers.
This represents an increase of 11% compared with the same period in 2012 and the number of people buying with cash today is at the highest point since 2008.