UK Real Estate Finds Demand Outpacing Supply
As a UK real estate recovery seems underway, and housing prices continue to rise, demand is far outreaching housing inventories.
Across the UK, housing values have reached an all-time high, surpassing previous records from January 2008, up 0.3 percent. But, as values soar so, too, does demand. The number of first-time home buyers has risen by 70 percent this quarter which represents a 16 percent increase in annual sales.
Government lending schemes have introduced many new buyers to the market, creating major increases in demand to the tune of 12 buyers per property in London. Leading real estate professionals are saying that across the UK demand is about half, but there are still six buyers per every property on the market. This kind of growth is ideal for property values in a normalizing marketplace, yet not so much for buyers.
7 percent growth in values across the UK real estate landscape and 6 percent in London is a result of the increased demand for housing. As new affordable housing is still under construction across the country and values continue to rise, buyers will have to be patient in a currently frustrating buyer's market.
Have you seen these trends in your local marketplace? Are multiple offer situations becoming more and more common in your market?
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Photo Courtesy of plot19’s Flickr