Around 12 buyers for every property in London, according to estate agents
|Friday, 18 October 2013|
There are almost 12 buyers for every new property put on the market in London with buyer registrations up by 50% annually, according to data from leading estate agents.
At the same time new instructions in the city have fallen by 1% on month, rising just 17% annually, less than a third of the rate of demand, says the latest report from Sequence, owners of 300 branches, including Barnard Marcus, William H Brown and Fox & Sons.
The pattern is repeated elsewhere in the country, albeit on a smaller scale. UK buyer registrations have increased by 4% on month and 24% annually UK property instructions have fallen by 2% on month, growing just 4% annually, some six times slower than annual buyer registrations. This amounts to six buyers per property.
The report also says that UK prices are flat month on month but have increased 7% annually to an average of £204,340. London prices have fallen 2% month on month but are up 6% annually to an average of £390,355.
The research also shows that first time buyers are back, with applications up 46% annually and 4% month on month.
‘This growing competition for property is now impacting on house prices, which have grown by an average of 7% annually in the UK and 6% in London. Demand is set to escalate yet further following the government’s fast tracked introduction of Help to Buy to the pre-owned market, so competition for property is only going to increase, fanning the flames for frustrated buyers,’ he explained.
‘However, second and third steppers across the country should now be encouraged to put their property on the market, incentivised by rising prices, a ready pool of buyers and now also the chance to access a 95% mortgage themselves. This will increase the supply of property in the short term and create a more balanced market across the UK,’ he added.
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