Homeowners can command the top price for their homes
The housing market in the UK is facing an acute shortage of homes for sale as the supply of homes fails to keep up with the current buying frenzy.
The number of properties for sale has dropped to its lowest level for over six years and is forecast to remain low well into 2022, says the latest Zoopla House Price Index for July 2021 (published August 26th, 2021).
The result of this mismatch between supply and demand has resulted in a sellers’ market, particularly for 3 and 4-bedroom family homes, and properties priced up to £350,000, which is driving prices up as homeowners can command the top price for their homes.
If you have a family home to sell you are in a prime position to take full advantage of the current sellers’ market and achieve the top price for your home. With the market moving quickly, you can also expect a quick sale.
The Zoopla report says that one in 20 homes changed hands over the last year driven by the stamp duty holiday and the Covid-induced search for more space. However, the number of homes being put up for sale is failing to replenish those sold. This has resulted in the most acute shortage of housing stock since 2015.
This shortage in housing stock is shown in the price of houses which rose by 7.6% over the past year, compared with a gain of only 1.2% for flats.
It’s predicted that the shortage of properties for sale is expected to continue well into 2022, as the impact of the stamp duty holiday continues. Once this and other government measures have waned, levels of UK housing stock should start to recover gradually.
The Zoopla report says that low levels of homes available is likely to result in a slowing down of the market towards the end of 2021 and into early 2022.
Gráinne Gilmore, Zoopla’s head of research, said: “The post-pandemic ‘reassessment of home’, with households deciding to change how and where they live, has further to run, especially as office-based workers receive confirmation about flexible working, allowing more leeway to live further from the office.
“However, the lack of supply, especially for family houses, means the market will start to naturally slow during the rest of this year and into next year, as buyers hold on for more stock to become available before making a move.
“As we move into 2022, there will be a strong start to the year in line with seasonal trends, but after that, a return to more usual levels of activity among first-time buyers, the effect of the ending of the stamp duty holiday, and some buyers waiting for more stock to become available will result in a slow repairing of stock levels through the first half.”
