Supply Of Homes Rising But Not Fast Enough
27th August 2020 posted in Sellers Buyers
The relationship between supply and demand of homes has always been crucial to the housing market. In recent years, the demand for homes has been much bigger than the supply of property. With the stamp duty holiday in place, it is no surprise that there is considerable demand for homes across the UK right now.
Of course, when homeowners know there are willing buyers in the market, this often leads to a greater supply of property. Right now, it is fair to say many vendors are taking the plunge by entering the housing market, but with a greater number of willing buyers looking for property, there hasn’t been much of a change in the relationship between buyers and vendors in the London market
Stock count has fallen compared to last years’ figures
An interesting from the figures is that while there has been an increase in demand for property, the overall stock count for August 2020 is 9.1% lower than the August 2020 figures. It is fair to say that homeowners have been placing their homes on the market, but the demand for property right now is ravenous compared to previous years.
The combination of the lockdown and the stamp duty holiday has created an environment where many people are keen to move as soon as possible. As has long been the case in the UK housing market, demand outstrips supply, and this is partly responsible for house prices rising across the country.
It would appear as though estate agents have been extremely busy in July. We can speak for ourselves at Hunters West Hampstead, and we are pleased to say we have welcomed many buyers and vendors to our offices, and spoke with many people online or by phone. There is a great level of activity in the housing market right now, which must be viewed in a positive manner.
It appears there is a considerable amount of new instructions taking place, and according to the Home.co.uk site, London agents have been busy.
London estate agents have been busy
Agents in the capital have been classed as the busiest for July 2020. New inventory rose by 45% compared to the July 2019 figures, and this should be viewed as a positive factor. Some parts of London might soon experience an oversupply of property, but when you consider how rare that has been in recent years, it might not be the largest issue.
When it comes to asking prices, there has been a rise for the third month in a row in England. Areas like Yorkshire have seen a notable rise in prices, at 2.3%, but the Greater London market has experienced a more cautious approach. The rise in Greater London has been 0.5%.