The availability of residential property is now at its lowest level for a decade, a new report has discovered.
According to the National Association of Estate Agents’ (NAEA) latest Housing Market Report, the trend is causing prospective property owners to pay over the odds for a new home.
This means many people are turning to rental accommodation instead of taking out a mortgage, due to the increasing cost of purchase.
As stated in the report, the average number of available properties per NAEA member branch has fallen to 42 per month in March this year. This is in comparison to the 57 properties recorded in September 2013.
It continues to say that this has caused 19 per cent of properties to be sold over the asking price during March 2014, almost tripling the seven per cent from September last year.
Despite the number of sales per NAEA member branch dropping from nine in February to ten in March, there was also a decline in the number of people registering with NAEA estate agents. A five per cent decrease was seen from 331 to 313.
This presents an opportunity for investors, who could benefit from the increase in renters throughout the UK.
Not only will this provide a steady monthly return, if property prices continue to increase due to rising demand, your bricks and mortar will practically generate money.
Jan Hytch, president of the NAEA said: “Overall property sales may be up, but the proportion of first timers purchasing a property is down and with the significant changes that the Mortgage Market Review will bring just around the corner, we’ll be watching closely to see what kind of an impact is felt.”