Financial professionals report a market surge in property sales

Supposedly, the Property market is showing clear signs of recovery. What this signifies for the financial services industry and the financial advisory and mortgage advisory markets , it is too early to tell. Longer term stability in the financial services arena is still elusive and financial advisers and mortgage advisers will start to see a clearer picture I feel towards the end of the year.

The headline stems from the fact that, the Agency Express Property Activity Index,a measure for the property market in general, which is based on the use of 'For Sale' and 'Sold' boards across the UK is currently revealing that the number of 'Sold' signs instructed by estate agents last month rose to its second highest level since the same time last year.

The use of 'Sold' signs increased negligibly in May, although 1.2 per cent, compared to the previous month and a massive 123.2 per cent on December's low. March has been the only month so far to have a higher level.

The thing is, May's new 'For Sale' board activity was still significantly down, 44.6 per cent on May last year and 63.6 per cent down on May 2007 - the highest recorded month in the last two and a half years. So are we really seeing a significant recovery? Or is it just a dead-cat bounce? Mortgage advisers, I'm sure, will have their own idea's.

The Agency Express Property index has also reported a just over 2 per cent increase from April to May in the number of 'For Sale' boards being erected. Now obviously this doesn't mean that all those houses will convert to sales, however, it does give an indication as to the thoughts of homeowners and whether or not they are seeing a recovery.

This is the fourth month out of the last five that the number of new 'For Sale' boards has increased on the previous month. Personally I think that its more than likely wishful thinking on the part of the consumer, especially given the difficulties still faced in securing a new mortgage. You're going to find it hard to sell your house if the person trying to buy it is unable to secure a mortgage! Many financial advisers are reporting that its still virtually impossible to find lenders that will release money to people with a less than squeaky clean credit rating and less than a 40 per cent deposit - and lets face it, the amount of people that can raise that capital are pretty thin on the ground.

Regionally there are differences in the amount of boards being moved from 'For Sale' to 'Sold' with the largest increase coming from the affluent south east. Reporting a 26 percent monthly rise it is followed closely by Scotland with 23 percent. Conversely there are also regions that are perhaps not faring so well with increases in 'For Sale' signs but no convergent increase in 'Sold' signs and these include both the East midlands and London with Yorkshire next up.

Despite the still turbulent economy and the shaky lending practices some Estate agencies, mortgage advisers and financial advisers are saying that properties are still being sold and more so than they have been for the last 12 months and there are definitely more and more people that are deciding that this is the time for them to try and sell their house.

Also the Agency Express Property Index is confident that because their information is taken from the beginning of the house sales process that it gives a good indication of activity and the way the market is swinging, this will also be reflected further in three or four months time.

As a financial services recruitment consultant I certainly hope so. Any upswing in the financial services market is a good thing for us - it brings about movement in the job market and more jobs are created in the mortgage advisory arena particularly. Because of our focus this is the indicator we are more inclined to use as a more stable measuring tool of long term stability in the financial services industry and it will afford us a better picture of the financial services industry in general. The recruitment industry in this sector, have however, reported a small increase in the number of opportunities available for financial professionals across various arenas, seeming to indicate some sort of recovery across a wider area. We can only hope so!