UK Housing Market Suffers From Shortage
According to real estate company Zoopla, there is an “acute” shortage of homes available for sale in the UK. The property market is facing its biggest shortage since Zoopa’s records began in 2015.
The warning by Zoopla comes as the average price of houses in the UK rose by 7.6% over the last 12 months. Despite this, buyer demand remained strong in July, up 20.5% compared to the 2020 average.
Zoopla has said that stock levels are down 26.4% compared to last year’s average and down 33% compared with the pre-pandemic markets of 2018 and 2019.
New property listings are currently 5% below average since the beginning of 2021. Increased activity amongst investors and first-time buyers is absorbing stock but failing to replenish it. The increased number of sales over the past 12 months has eroded supply. 1 in 20 homes changed hands over the past year, while in 2019, this was 1 in 25 homes. This has seen competition among buyers ramp up throughout the second half of 2020 and 2021. On average, it took 49 days for a property to sell two years ago. In 2021, this average has dropped down to just 26 days.
However, Zoopla expects that once the impact of the stamp duty holiday wears off and government incentive is withdrawn, stock levels will gradually begin to repair.