UK Property Market: Housing Demand Fluctuates

Lack of Housing Stock – What’s the Cause?

Inadequate levels of housing supply are coming to the market. The lack of housing stock has been aggravated by several factors. This includes the influx of first-time buyers entering the market. As a result of the government support schemes, the property market is experiencing an increase in activity from first-time buyers. However, it is important to note, many first-time buyers have nothing to sell. Therefore, activity is high, but housing stock remains sparse. Nevertheless, activity from first-time buyers will only increase as we head into the initial stages of the 95% mortgage guarantee scheme.

Additionally, in the midst of the pandemic sellers were hesitant to open their houses for potential viewings, therefore did not proceed to sell. However, this did not stop them from browsing other properties. The re-opening of schools has led to the end of home-schooling. As a result, the market has witnessed a 30% increase in new listings. Causing levels of housing supply to curve to an average.

Without a doubt, many factors are contributing to the undersupply of housing and soaring levels of demand. Although the market difference may resume to a moderate level, we predict the gap will remain. Besides, as businesses plan their return to work, many have confirmed long-term working flexibility. Allowing employees to work from home as well as the office. However, this will add further pressure on the demands for ‘more room’, as people look to incorporate home offices in their spaces.  

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