Every home for sale in the UK is being chased by an average of 12 buyers after house-hunter appetite made huge leaps over the past 12 months, meaning now might be a good time to think about selling up.
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This past year has seen the number of potential homebuyers registering with estate agents grow by 22.1%, while the number of properties on the market has risen by just 6.5%, leading to an imbalance between demand and supply, according to research from estate agent Haart.
With the stamp duty cuts in November’s Autumn Budget attracting more first-time buyers to the market, agents have seen a 24% annual rise in this buyer type, with a 16.8% jump between February and March, while average property prices for first timers have fallen month-on-month by 1.9%. Furthermore, while deposits are often one of the major barriers to most people getting onto the property ladder, these have also fallen by an average 6.5%, which will be a welcome relief to many.
Sellers will see increased demand
Those who already own homes and are looking to sell will be able to reap the rewards from the rise in buyer demand, says Haart CEO Paul Smith, as the lack of available houses has contributed to prices rising by an average £6,898 in England and Wales.
“Those considering putting their home up for sale should do so now before the gap between stock and demand begins to narrow” – Paul Smith, Haart
The results from Haart also show that transaction levels have decreased by 10% over the past month, which could indicate that buyers are looking at more properties before they make their final purchase, meaning homes are on the market for longer.
Landlords are seeing strength in the market
Another positive for the housing market is that the number of landlords registering to buy in England and Wales has jumped by 22% over the past 12 months, according to Haart, with an 18% rise in London.
Smith added: “Despite a barrage of restrictions and additional costs as a result of government policy, many are recognising the value that can still be found in buy-to-let property, especially in comparison to the overvalued and faltering stock market.
“Although conditions are much tougher, demand from tenants is growing and if you are willing to look slightly further afield there are still yields of around 7% to be gained.”
