The real estate market has become “unsustainable” because of the huge gap between the number of buyers and sellers, according to the head of the real estate industry body.
According to the latest figures from Propertymark, an average of 511 buyers were registered per real estate agency in October, an increase of 12% from the previous month.
However, there were only 21 properties available to buy – the equivalent of one home for 24 buyers.
This is the lowest figure on record and a decrease of 46% from the previous October.
Rarity: There are only 21 properties for sale per real estate agency, according to the industry body, Propertymark. Its director general described this situation as “unsustainable”
This reduced the total number of agreed sales to just eight per branch in October 2021, a 32% drop from sales on September 11.
Nathan Emerson, Managing Director of Propertymark, said: “The October numbers show a continuing picture of the housing market that is unsustainable.
“Real estate agents across the country are working with some of the lowest levels of available housing we’ve ever seen, but buyer demand is not weakening.”
The high level of competition meant that 55% of sellers were able to sell their homes at the original asking price.
However, fewer were able to sell their homes for more than that. Above-asking sales fell to 21 percent in October, from 27 percent in September.
There were also signs that rental investors were returning to the market, creating even more competition for home buyers.
The approach of the holiday season should reduce the market heat a bit
Nathan Emerson, Trademark
The proportion of properties sold to owners fell from 9% in September to 13% in October.
A quarter of properties were sold to first-time buyers, down slightly from 28% in September.
Emerson said the holiday season could see the market become calmer, giving shoppers some breathing space.
“The approach of the holiday season should take a bit of pressure off the market as we know the usual market trends are seeing a decrease in activity as people turn their attention to Christmas,” he said.
“However, with so many buyers still hungry for their new home, sellers would do well not to put moving plans on hold for too long.
“What we need to see in the New Year is a slight leveling off, which could be driven by New Year incentives delivering new sellers or shifting interest rates taking some of the growing energy. buyers. “
The Bank of England is reportedly considering raising its base rate from its current level of 0.1%, which would likely cause mortgage rates to rise.
Some had predicted that the end of the stamp duty holiday on September 30 would reduce demand for the move, but figures from Propertymark suggest that may not have been the case.
Buyers paid up to £ 15,000 less in stamp duty between July 2020 and the end of June 2021, and up to £ 2,500 less between July and September 2021, although house prices have also increased significantly. spectacular during this period.
House prices have continued to climb since September, with Halifax reporting an 8.1% year-over-year increase in October.
He said prices had reached an all-time high of £ 270,027, up £ 31,500 since the start of the pandemic.
Recent figures from the Office for National Statistics indicate that transactions fell 52% between September and October, although this was likely affected by the shortage of new homes as well as the removal of the tax incentive.