Property supply in UK housing market rises

Supply in the UK’s housing market reached its highest level since March this year and is a sign that it is moving in the right direction, according to estate agents.

The number of houses available for buyers increased to 41 per branch in August, the highest level seen since March when agents reported an average 54 properties registered per branch.

The monthly report from the National Association of Estate Agents (NAEA) also shows that the number of sales made to first time buyers increased in August from 25% of total sales in July to 28%.

Year on year, this figure is up by 8% as August 2015 saw just 20% of sales going to first time buyers. Looking ahead some 39% of estate agents expect demand to grow following last month’s interest rate cut and a 25% think first time buyers will rise as a result.

In August, the number of house hunters registered per member branch dropped marginally, to an average of 287, from 298 in July and the NAEA pointed out that is in line with seasonal expectations.
The data also shows that last month some 76% of properties sold per NAEA member branch were for less than the original asking price, a decrease of 3% from July when 79% of properties sold for less than asking price.

‘Following a few months of uncertainty in the market, it’s more than encouraging to see things moving in the right direction,’ said Mark Hayward, NAEA managing director.

‘Although we have seen a slight drop in demand, the fact that supply has risen means more choice for those that are looking for a new home and we can see the impact of that because the rise in sales to first time buyers was higher than we normally see in August,’ he explained.

‘News from the Treasury this month that government deposits on the Lifetime ISA can be used towards the initial deposit to secure a property and the impact of interest rate cuts will also raise confidence in first time buyers that now is a good time to be looking to buy,’ he added.