Shortage of properties coming to market in South West

There is a significant shortage of properties coming onto the market in the South West, according to new data.

The figures, from cash homebuying company Quick Move Now and  property data company Home.co.uk, show that the number of properties that came onto the market in April 2021 was 29 percent lower than April 2019 levels, and 28 percent lower than in April 2016.  Currently, every region except Greater London is experiencing a substantial reduction in the number of properties being newly listed, but the South West of England has seen the greatest drop compared to two years ago. The lack of properties coming to the market is accompanied by increasing demand for property in the region, which is, in turn, resulting in substantial price rises.

Nationally, the number of new properties on the market in April 2021 was 16 percent lower than two years ago, and 28 percent lower than five years ago.

Danny Luke, Quick Move Now’s managing director, explained: “We’ve seen a significant shortage of properties in all but one region of the UK over the last year. The fewer properties there are available, the higher we see properties rise. This is especially true in desirable areas such as Devon and Cornwall.

“According to Nationwide’s House Price Index, house prices across the UK increased by 7.3 percent in 2020.  Over the same period, Devon saw property prices growth at nearly twice that rate, with a 13 percent increase.

“So, what has provoked the high demand and low stock levels? Demand has been largely driven by the government’s stamp duty holiday. More companies offering the option to work from home has also given homeowners the opportunity to choose their location based on desire rather than necessity. As for the shortage in supply, although the stamp duty measures have encouraged many second-steppers to move house, it has failed to ignite the top end of the market, where many homeowners are still showing a great deal of caution unless they have an urgent need to move.

“When the stamp duty holiday comes to an end, I would expect to see demand slow, as the urgency leaves the market. This will give the market a chance to rebalance and for prices to stabilise.

“If you’re looking for your next property, I would recommend that you make yourself as proceedable as possible. Ensure your finances are in order and you have a mortgage in principle. It’s also worth considering that if you’re able to make yourself a chain-free buyer it will make you more desirable to sellers.