The current lack of homes for sale in the UK is a major contributing factor as to why the cost of buying a new home is on the rise. Experts are in agreement that the number of homes that will be on the market this year will be so low that we can expect the prices of those homes to be on the unrealistic side.
It is a basic scenario of supply and demand. There is a lack of supply but the demand is high, which means the supplier can ask any price as they have the upper hand.
- Areas with decreased buyer interest are greater than the ones with increasing demand.
- House price growth is at its weakest since 2009 in the central London market and remains under pressure.
- Estate agents are being left with an average of 43 unsold homes on their books due to a scarce supply of properties.
"The shortage of homes available has also had a knock-on effect on sales, with an increasing number of experts in the industry reporting a decline in completed transactions."