The latest data and analysis from independent estate agent, haart, has shown that imbalance in the housing market remains a major problem for buyers as total buyer registrations see a 22.1% rise on the year, but number of available properties increase just 6.5% over the same period.
According to haart, house prices across England and Wales rose by 0.7% on the month and by 3.2% on the year. The average house price now sits at £229,938.
New buyer demand for homes rose by 22.2% on the month and by 22.1% annually. The number of properties coming onto the market has risen by 17.1% on the month, whilst it has increased by 6.5% on the year. This month there are over 12 buyers chasing every property across England and Wales.
The market has become less efficient this month, as the number of transactions has decreased by 10% on the month, and by 16% on the year, as the number of viewings has increased. This generally means that buyers are choosing to look at more properties before they buy.
The average purchase price for first-time buyers has fallen by 1.9% on the month, but has risen by 2.3% on the year. This comes as the number of first-time buyers registering onto the market has risen by 16.8% on the month, and by 24% on the year.
Coinciding with the average purchase price falling, the average amount paid of a deposit has fallen by 6.5% on the month but is up by 4.6% on the year.
Paul Smith, CEO of haart, the UK’s largest independent estate agent, comments: “Homeowners are continuing to reap rewards from high buyer demand and a Spring Homes Shortage. Buyer appetite has leaped a significant 22% on the year, whilst at the same time the number of new properties coming onto the market increased by just 6.5%. It’s therefore no surprise that prices have risen by a huge £6,898 on the year across 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.
We are also continuing to experience a much more motivated and mobile cohort of first-time buyers, who are continuing to take advantage of the Stamp Duty exemption – keen to finally escape the rental trap, or to get out from under Mum and Dads roof. Four months down the line we are still experiencing a 17% increase in numbers entering the market on the month. All the more reason to get your starter home on the market.
More promising still, we also saw a 22% increase of landlords registering to buy across England and Wales, and 18% in London. 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.”