Residential property markets across the UK are coming perilously close to running out of any stock whatsoever to sell, according to findings from property data and analytics company, TwentyEA.
Its Property and Homemover End of Year Report – 2021, published by parent company, TwentyCi, showed that in 2021, there were 6% fewer properties put up for sale as the end of the stamp duty holiday and a lack of available options for prospective purchasers substantially slowed the stock coming to market.
On average, there is now just 2.5 months’ worth of stock available across the UK, with the significant momentum seen in the residential property market throughout 2020 and 2021 – fuelled by the stamp duty holiday, the race for space and changed priorities – now coming to an end and a re-calibration to pre-pandemic levels anticipated for 2022.
The South West, Yorkshire & The Humber, Wales, the East Midlands and the West Midlands are the closest to running out of stock if, theoretically, no new stock came to market.
The research found that, in comparison to 2019, there has been a significant fall in the availability of all property types other than flats.
Worryingly, aside from inner London, the whole of England and Wales at a regional level has between 2.2 and 3.1 months of property stock left to sell, the findings showed. The available months of stock are, overall, down by nearly half on historical norms.
TwentyEA believes that without a significant uplift in the volume of new instructions, the residential property market is at risk of a significant slowdown in 2022
“Such a scenario in so many of the UK’s property markets is, quite frankly, a little bit scary,” Katy Billany, executive director at TwentyEA, said. “It’s neither sustainable or healthy, and points to a dysfunctional housing market that remains too lopsided in terms of supply and demand.”
Stock shortages in the UK residential property market are nothing new, but the problem seems to have become particularly heightened in recent years, with record low levels of supply witnessed in various areas of the country.
“When will all this come to a head?” Billany asks. “If the current trends continue, could it be conceivable that the whole market starts to grind to a halt as there is nothing left to sell? This then has a knock-on effect for agents, conveyancers, surveyors and so many others.”
“This is obviously the worst-case scenario, and we’re still some way off that even in the markets most at risk of a massive undersupply of new listings, but it’s not something that can be discounted completely. And we shouldn’t get complacent,” she added.
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Comments (1)
Agreed our stock is the lowest in 12 years, but we have also sold more stock in 2020 and 2021 than ever before.
So the only thing you can do is keep on going, clients are worried that if they list now, will have nothing to move into. Vendors are becoming greedy, making sure they hold back on agreeing offers and pushing up last and final offers ect.( I see significant signs of something similar to 2006 coming )
Rental stock is also at an all time low, more Non working tenants demanding to let with guaranteed income of 27k upwards from the government, non uk residents flooding the area wanting rentals offering cash up front older students with large families in at London coming to Huddersfield ( very concerning )
Inflation is the one thing that is going to hinder in 2022 people are worried over the cost of living house hold costs are trebling from Covid 19
Some home owners are holding back…( a lot of marriage breakdowns also in the last 12 months where they are not wanting to sell the family homes therefor needing second purchases ect.
That’s a short snip-it of our finding for the low stock