The UK’s thriving rental market could be served another boost this year, after it was revealed that late 2015 marked a real fall in the number of homes available for people across the country to buy.
The supply and demand issue has long been an issue for the market nationwide, but now, even as more people are looking to buy, it has been revealed that the volume of homes actually on the market for sale has fallen, potentially exacerbating the problem and sending more people than ever towards rented properties.
This comes at a time when the overall stock of homes in the UK has been announced to be worth more than £6 trillion for the first time, but even though the value and volume of homes continues to grow, the National Association of Estate Agents (NAEA) said more people are now staying put for longer, meaning fewer homes for sale.
According to the latest data, for December 2015 there were an average of 37 properties listed for sale per estate agent branch nationwide. This was down markedly from the 45 recorded a year earlier, and just more than half of the 72 that was in evidence in the same month ten years ago.
This comes in spite of the growing number of potential buyers. The volume of registrations per branch in December was at 374 for. This was up from the 360 recorded in the same month a year ago, and well ahead of the same time a decade ago when there were far more homes for sale.
What this could mean is a boost for landlords across the nation. Supply and demand issues mean that there is often competition that prices people out of the market, and this could increase the volume of people looking to rent rather than buy at what will be a rather competitive and cut throat time for the market.
“Whilst we expect figures for supply and demand to be seasonally low in December, 2015 overall does not paint a positive picture for the housing market. Supply of housing is half of what it was 10 years ago,” said Mark Hayward, NAEA managing director.
“Yet the number of home buyers on the books has been gradually increasing. When there is such a huge and widening gap between supply and demand, a level playing field seems further out of reach for many would be house buyers.”
And it’s not just home buyers who are looking for properties. Since the announcement of stamp duty increases on buy-to-let and second homes, the market has witnessed a rise in the amount of people looking for buy-to-let mortgages. Click here to read more about this story on the Experience Invest Blog.