Supply and demand imbalance continues

November’s National Housing Market Monitor from haart has shown that Help to Buy fuelled a 92% annual rise in new buyer enquiries in first week of October whilst new property supply fell 2%.

The average first time buyer property price now £152,593, up 6.1% annually with the average UK property price up 11.5% annually to £191,343.

First time buyer registrations increased 82.9% year-on-year in London and 74.3% across rest of UK.

Paul Smith, CEO of haart, said: “Our message to potential sellers is sell, sell, sell as we just can’t get enough stock.

“Demand for first homes, in particular, is overwhelming and the supply is still extremely limited which is why the average price of such properties is up 6.1% annually.

“There is no doubt that the catalyst for this was the advanced launch of Help to Buy’s second phase — first time buyers are now not only getting mortgages but also getting younger — now just under 32 years old!

“Any second steppers, who provide the majority of homes for first time buyers, selling now are finding that their properties are snapped up quickly and at a very good price — our message is to act now and not wait for the New Year.

“The first time buyer comeback is definitely not abating and this is the message that sellers need to hear to oil the market sooner rather than later and to keep a lid on rising prices.”

Today's Conveyancer