The supply of available housing on sale has almost halved in the past 10 years according to the National Association of Estate Agents.
The average number of properties available per member branch in December 2015 fell to 37 properties. This was one of the lowest monthly figures for 2015 and almost half the number available in December 2005 when there were an average 72 houses per branch.
Even as recently as December 2014 there were 45 houses available.
While the number of house hunters registered per branch fell to 374 in December from 403 last month - an expected seasonal trend - the number of house hunters per branch has gradually increased year on year.
In December 2014, there were 360 potential buyers registered at each branch, up from 302 in December 2005.
“Whilst we expect figures for supply and demand to be seasonally low in December, the year 2015 overall does not paint a positive picture for the housing market. Supply of housing is half of what it was 10 years ago, yet the number of home buyers on the books has been gradually increasing. When there is such a huge and widening gap between supply and demand, a level playing field seems further out of reach for many would be house buyers” says NAEA managing director Mark Hayward.
He says government efforts to help first time buyers enter the property market via Help to Buy and plans to build new starter homes are yet to take effect. The number of sales to FTBs stands at 24 per cent, a two per cent drop from December 2014.
Some 44 per cent of NAEA member agents canvassed have reported seeing buyers seeking to beat the April 1 additional homes stamp duty surcharge deadline.
“The issue of lack of supply needs to be solved, but it isn’t going to be done anytime soon. We are still waiting to see new homes being built; and whilst we wait, house prices continue to rise. There is some potential light for first time buyers however, once the new tax rate increase in April is in place we may see less investment from buy-to-let or second home investors, which may mean less competition for first time buyers” says Hayward.
Housing supply increased by 25% in July, according to the latest...
One in six properties sold for over the original asking price...
New figures from the National Association of Estate Agents suggest that...
The housing market ended 2016 on a positive note, according to...
The predictions game can be tricky. Sometimes you just don’t know...
Leading UK property auctioneer Bond Wolfe has broken through the £100...
Uncertainty triggered by the new Labour Government and taxation concerns that...
In today's rapidly evolving property market, the focus on reducing transaction...
.png)
An exciting new collaboration between TVPN, EstateApps and Paul Long is...
By Mike Bilboe, Face For Business Buying or selling a home can...
LSL Estate Agency Franchising is home to one of the UK’s...
.jpg){kind=logo}
B-hive Block Management Partners Celebrates Major Milestone With Over 100 Businesses...
.jpg)
Tell us a little bit about National Home Move. We are a...
If you’re thinking about becoming an Estate Agency franchise or converting...
Estate agents and lettings agents have a legal obligation to protect...
You don’t have to simply accept things as they are when...
From the uptick in house sales in January to a house price...
Happy birthday to us….and all members of the The ValPal Network! We...
With a combined value surpassing £7.4 trillion, the UK’s 29 million...
%20-%20IMAGE%20Client%20Accounting%20%E2%80%93%20what%20are%20your%20options.jpg)
The benefits for letting agents to outsource their client accounting is...
When almost all agents and developers use the tried and tested formula...
I think we can all agree that the National Trading Standards...
.png)
As domestic battery storage systems become increasingly prevalent in UK homes,...
.png)
A team from The ValPal Network joined industry Facebook ads expert...
.png)
In this interview, Riccardo Dawson, Chief Operating Officer at Alto and...
%20(002).png)
In today's fast-paced and ever-evolving property industry, it’s essential that forward-thinking...
A client account is essential to your lettings business, but the...
As electric vehicles increasingly populate our roads and the necessity for...
As estate agents, it is important to make sure that your...
Estate agency has changed. No longer is it required to sit in...
Changes to consumer behaviour usually arrive in waves. Most of the...
At iamproperty we are excited to share the announcement of our...
It’s no secret – 2023 is a difficult year for the...
In an exclusive interview with Estate Agent Today, Simon Coaker, Sales &...
2023 has been coined as ‘the year of AI adoption’, and...
%20(002).jpg)
There are a few common questions that arise when the issue...
As a signage company we know we have a serious responsibility...
The Government’s mini budget on September 23 was anything but ‘mini’...
Agent websites have become more crucial than ever in attracting new...
.png)
Who are you and what does it say on...
Who are you and what does it say on...
Who are you and what does it say on...
Join the conversation
Jump to latest comment and add your reply
And we wonder why we've got a housing crisis!
What? I'm shocked. And in others news...the Pope's still Catholic.
Demand massively outstripping supply and only getting worse, but still the government refuses to act. Schemes with questionable efficiency and a rebranding of what is affordable just isn't going to solve this problem. What is the government's agenda? It's almost like they need house prices to remain high...
Yes, this lack of supply is putting undue pressure on landlords like me. Landlords who have become the new punching bag for the public and the government. I'm not saying we're perfect or above criticism, but we're providing homes for people and being criticised for it. The government aren't providing enough homes and aren't being criticised anywhere near enough for it.
The supply side issue needs to be sorted as a matter of urgency, but as Algarve points out it is in the government's interests to keep house prices artificially high and interest rates artificially low. They know the economy would tank if there was a dramatic fall in house prices, so it looks like this problem will roll on for a few years yet. It will, as always, be the decent, hardworking, ordinary people who suffer from all this.
It's quite astounding that despite this huge imbalance between supply and demand and the consequent house price rises that there was only a 2% drop in FTB's in the last year!
I would have expected it to be a much bigger drop, all things considered.
The government keep promising a range of schemes to try and help with the housing crisis, but I see no big changes that will have a dramatic impact, just smokescreens and mirrors if I'm honest.
Please login to comment