Since the start of the new year, there has been a significant surge in new buyers coming to the market, and due to the lack of sellers, there has been a serious demand for property in the UK.
A new report from haart investigated the activity between buyers and sellers over the last 12 months to establish the difference between the two.
According to their analysis, total buyer registrations rose by 22.1% year-on-year, a huge rise in comparison to sellers coming to the market over the same period, as there was only an increase of 6.5%.
As a result of recent changes to stamp duty, it was reported earlier this year that first-time buyers are now rushing to the market, with this demographic growing by 16.8% from month-to-month alone.
Due to the considerable rise in new buyers entering the market, this now means that, on average, there are 12 buyers competing for each home available for sale in the UK.
Unsurprisingly, transactions have taken a 10% fall month-on-month, whilst the average number of viewings for buyers has increased, indicating that buyers have become more thorough in the search for their perfect home.
With a growing demand for homes, it is expected that house prices will also increase and there have already been reports that the average UK home has increased in value by 1.27% in the first quarter alone.
The shortage of available homes this spring has created a great opportunity for those considering putting their property on the market, with many property experts advising homeowners to take advantage before balance returns to the property market.
CEO of haart – Paul Smith – said “We are also continuing to experience a much more motivated and mobile cohort of first-time buyers, who are continuing to take advantage of the Stamp Duty exemption – keen to finally escape the rental trap, or to get out from under Mum and Dad's roof. Four months down the line we are still experiencing a 17% increase in numbers entering the market on the month. All the more reason to get your starter home on the market.
“More promising still, we also saw a 22% increase of landlords registering to buy across England and Wales, and 18% in London. Despite a barrage of restrictions and additional costs as a result of government policy, many are recognising the value that can still be found in buy-to-let property, especially in comparison to the overvalued and faltering stock market. Although conditions are much tougher, demand from tenants is growing and if you are willing to look slightly further afield there are still yields of around 7% to be gained.”