According to a recent report published by home.co.uk, the UK property market has reached crisis point, with the shortage of houses for sale plummeting to alarmingly low levels!
England and Wales has seen a 51% decrease in the number of properties available over the last eight years, dropping from 855,585 in 2008 to just 415,038 in 2016.
Just looking at the past 12 months, the property market has seen a 12% decrease in the amount of available stock in April ’16 compared to the same month last year. With low level of stock coming onto the market each month it doesn’t look like the situation will change soon.
When looking at the property market regionally, it’s clear that every mainland UK region has seen a significant decrease in the number if new properties coming to market when comparing April ’08 with April ’16.
The West Midlands, East Midlands and the South West saw a dip in supply of new properties between April 2016 and April 2015, while the North East and North West recorded no change in the same time period.
Greater London saw the biggest increase of new listings (22%) when comparing April 2015 to April 2016 figures, however supply was still down 53% overall when comparing 2008 to 2016.
The South East saw a small increase of new properties coming to market in the last year, but again when comparing over an eight-year period, supply was down 44% overall.
The East of England and Yorkshire and The Humber saw a 3& increase in new properties coming to market over the last year, but much like the rest of the country, both regions saw an overall decrease of 53% and 38% respectively over an eight-year period.
It’s clear that the shortage crisis is a key factor in the continued rise in property prices over recent years.
To try and combat this trend, the government has pledged to support the building of 1 million new homes across the country by 2020.
Danny Luke, Director of Quick Move Now comments;
The UK property market has changed considerably since 2008. With prices continuing to rise, it’s becoming impossible for some first time buyers to get on the property ladder.
When you combine the price increases the UK has seen along with the significant increase in investors that have come onto the market over the past decade, this has all resulted in a detrimental effect on affordable housing.