Market update: demand outstrips supply and an increase in buyer demand

In the property market there is currently a huge shortage of properties available for sale, and house prices are higher than ever, which has led to demand outstripping supply.

At the moment housing market demand is up 28.6%, however available properties to buy are down 20.8% (year to date vs 2020). The demand outstripping supply is what is putting pressure on house prices and driving them up. Nationwide has reported a 10.9% annual increase, which is one of the highest year on year increases ever seen.

Nearly 120,000 transactions completed in April 2021, which was 21% higher than the April 2014 to 2019 average. Whilst nearly 90,000 mortgages were approved in April, which is a huge 30% higher than the April 2014 to 2019 average.

Although arguably some of this pent up demand is likely to be down to the stamp duty extension according to figures by Nationwide 68% of homeowners surveyed at the end of April 2021 who were either moving home or considering a move, said that this would have been the case even if the stamp duty holiday had not been extended.

So, if you are thinking about moving this summer then now is the perfect time to take advantage of the increase in demand from buyers. If you’d like to find out more about the property market in your area then why not get in touch with your local branch to see how we can help you with your move.

Sources: Dataloft Inform, HMRC, Bank of England, Zoopla and Nationwide.