Housing demand in UK reaches 11 year high
Housing demand in the UK has reached an 11 year high with the number of housing hunters registering with estate agents reaching almost 430 per branch at a time when fewer homes go on sale.
The number of house hunters registered per branch of members of the National Association of Estate Agents reached 439 in June, the highest since August 2004, and sales to first time buyers fell.
This is 15% more than in May when 383 house hunters were registered per branch and it comes at a time when supply of housing stock fell from 46 in May to just 44 houses available per branch, widening the growing gap between supply and demand.
‘What we’re seeing is a market that lulled over the general election period, coming back to life in full force,’ said Mark Hayward, managing director of the NAEA.
‘Buyers are feeling more confident and those who put their plans on hold over the election and political aftermath have kicked off their hunt, causing this massive jump in demand. There’s also an impetus to buy right now in light of the impending interest rate rise as buyers fight to buy and fix mortgage rates. But the fact that demand is at an eleven year high without the housing stock to fuel it, is bad news for the market,’ he added.
The monthly NAEA report also shows that as the gap between supply and demand widened in May, activity remained consistent, with nine sales made on average per branch for the second month running. However, the number of sales made to first time buyers declined in June, with the group accounting for just 24% of sales, compared to 29% in May.
‘Although activity is still slow, it’s very promising to see that the surge in demand and dip in supply hasn’t caused activity to halt, and houses are still being sold. However, the growing gap between supply and demand is worrying and clearly demonstrates that more needs to be done to plug this. The election was full of promises to build more houses, but now those promises need to be put into bricks and mortar to respond to demand,’ Hayward explained.