Housing demand at eleven year high
- The number of house hunters registered per branch in June is at highest since August 2004
- Supply levels fall marginally from May
- Sales to first time buyers sees decrease
- NAEA releases June Housing Market Report
The number of house hunters registered per branch was the highest recorded in eleven years, according to the National Association of Estate Agents (NAEA) June Housing Market Report.
The monthly report found 439 house hunters were registered on average per NAEA member branch in June, 15% more than in May when 383 house hunters were registered per branch and the highest since August 2004 when 582 were recorded.
Despite a massive jump in demand, supply of housing stock fell marginally from May, to just 44 houses available per branch (compared to 46 in May), widening the growing gap between supply and demand.
Mark Hayward, Managing Director, National Association of Estate Agents said: “What we’re seeing is a market that lulled over the General Election period, coming back to life in full force. Buyers are feeling more confident and those who put their plans on hold over the Election and political aftermath have kicked off their hunt, causing this massive jump in demand. There’s also an impetus to buy right now in light of the impending interest rate rise as buyers fight to buy and fix mortgage rates. But the fact that demand is at an eleven year high without the housing stock to fuel it, is bad news for the market.”
Sales to first time buyers down
As the gap between supply and demand widened in May, activity remained consistent, with nine sales made on average per branch for the second month running. However, the number of sales made to first time buyers declined in June, with the group accounting for just 24% of sales, compared to 29% in May.
Mark Hayward continues: “Although activity is still slow, it’s very promising to see that the surge in demand and dip in supply hasn’t caused activity to halt, and houses are still being sold. However, the growing gap between supply and demand is worrying and clearly demonstrates that more needs to be done to plug this. The Election was full of promises to build more houses, but now those promises need to be put into bricks and mortar to respond to demand.”