The number of properties on an estate agent’s books hit a nine-month low in January, NAEA Propertymark has revealed.
The trade body’s latest Housing Report found members reported the number of properties available to buy had decreased from 41 in December to 38 in January.
However, the number of buyers per branch increased to 425 in January from 386 in December.
The number of sales agreed per branch increased from six in December to eight last month – returning to the same level seen in November 2016, while more than one in every 20 sold for more than the original asking price in January – the highest amount since last April when 9% sold for more than the asking price.
Mark Hayward, chief executive of NAEA Propertymark, said: “January saw a surge in buyers looking to kick off the New Year with a new home – but competition is rife with an average of 11 buyers chasing each property.
“The increase in the number of properties selling for more than asking price in January could be a result of heightened interest and the fact there is simply not enough housing to meet demand.
“When the Government issued their Housing White Paper at the start of February we stated how important it was for the industry to put forward robust solutions to really make a difference, and it’s vital that building more affordable housing is at the very top of their agenda.”
Meanwhile, another report has shown that home affordability has fallen to its worst level across UK cities since 2008.
The Lloyds report, which measures the ratio between average house prices in 61 cities and average gross local earnings, found the price-to-earnings ratio in the UK has increased from 5.5 in 2012 to 6.9 in 2017.
This is close to the high of 7.2 in 2008.
Over the past five years, the average UK city house price has risen by 32% from £169,966 in 2012 to its highest ever level of £224,926 in January, Lloyds says.
In comparison, average city annual earnings over the same period have risen by only 7% to £32,796.
Oxford was found to be the least affordable place, with the average house price in the university city at £385,372, which was 10.7 times annual gross average earnings of £36,033 in the city.
As well as Oxford, five cities had average house prices at least ten times average annual earnings. These were Greater London and Winchester where it was 10.5, and Cambridge and Chichester where it was 10.3 and 10 respectively.
Stirling in Scotland was found to be the most affordable city, where average prices of £173,847 were 3.7 times average gross annual earnings.
Andy Mason, mortgage products director of Lloyds Bank, said: “City living is becoming increasingly expensive with average house prices at least ten times average annual earnings in five of the UK’s cities.
“Affordability levels have worsened for four consecutive years as average city house prices continue to rise more steeply than average wage growth.”
We have launched two properties in the last couple of weeks, and within two weeks we will have carried out 30 to 40 viewings on each. We could have sold each property five times over. I feel very sorry for all the frustrated buyers. Every house they look at they face huge competition for.
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Actually, we’re finding it to be the complete opposite. Things have finally levelled out. Lots and lots of new instructions, but fewer buyers, but those that are house has noting are serious. I’ve been waiting for this market!
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which area are you in nextchapter?
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Supply so low for us, it is making the demand seem high. I would imagine any return to a normal level of listings would level it out for us very quickly and perhaps even turn it in favour of buyers.
That said 95% of sellers are also buyers around us, so a horrid stale mate, whilst people hold off fearful of not finding their next home, yet if everyone just went on, problem would be solved, supply and demand levelled and a much better market for all.
PS – It’s snowing…….
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Sounds exactly like our market this time last year. The pain was exacerbated when we had a ridiculously high fall through level in the Spring with sellers deciding it was easy enough to sell, but nothing to buy so would stay put.
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Last Jan/Feb open days, sealed bids, no stock. This Jan/Feb mostly patrolling the streets with a sandwich board singing “Who will buy?” from Oliver Twist. Maybe not quite that bad, but certainly not great. Lot of unproceedable buyers in circulation pointing to a slow down at bottom of our market post stamp duty changes.
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There is no slow down at the bottom just look at cml figures. It,s affordability for the buyers and the fact that you and i know you! (think) have no stock at the bottom as you do not link in the FS knowledge to your business.
Look at cml and you can see where the mortgage approvals are coming from and talk to your advisors instead of asking them to sign to hand in your mobiles?
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We have the same Problem in Australia. Local government not releasing lands to keep the demand of housing market,
Thanks,
Don Hesh from https://introducer.com.au/
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