Despite the trials and tribulations that many developers and house builders face in the UK, supply in the country’s housing market reached its highest level since March this year, writes property developer Richard Carr.
The number of new homes available to buyers increased by 41% in August, which is the highest level experienced by estate agents since March 2016 when there was an average of 54 properties registered per branch.
This has resulted in there being an increase in the number of first time buyers with the National Association of Estate Agents (NAEA) reporting that the number of sales made to new property owners increased in August from 25% of total sales in July to 28%.
Based on year on year, this figure is up 8% on August 2015 and following last month’s interest rate cut 39% of estate agents expect demand to grow, whilst 25% expect the amount of first time buyers to rise as a result.
“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.”
“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.
With house prices rising at an alarming rate, it was interesting to note that during August 2016 76% of properties sold per NAEA member branch were for less than the original asking prices, which continues the trend from July when the figure was 79%.
Richard Carr hopes that the country can keep up with the rising demand for housing, but he isn’t pinning his hopes on the government making it easier for builders and developers!