UK Property Market Outlook: 9 August 2021
Demand has outstripped supply in most parts of the UK housing market this year. Thankfully, the imbalance is likely to reach its peak this summer
The combination of a lull following the stamp duty holiday and the summer break means one key indicator of demand reached its second-highest level in seven years in July.
The ratio of new buyers to new properties listed in the UK last month was 12.7. The figure was last higher in January 2020 (14.6), the first full month of the short-lived ‘Boris bounce’.
The UK property market should start putting the supply/demand distortions of the last 18 months behind it from the autumn, meaning this particular ratio will fall.
As supply picks up, the clamorous headlines around house prices may also recede.
We started to see signs of this last month when the Nationwide index fell back to annual growth of 10.5 per cent from 13.4 per cent in June.
Why should supply increase? To find out why click here
Source: Property Wire