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TODAY'S OTHER NEWS

Sellers throwing caution to the wind on prices as supply "hits new low"

Sellers know there is a shortage of supply of homes on the market and are therefore throwing caution to the wind on asking prices, according to Home.co.uk website.

This is particularly the case in Greater London where asking prices jumped nearly a percentage point over the last month, which corresponds with an additional £15,000 on the average home.

Home claims the total number of properties on the market has fallen to a new low. 

Just over 386,000 properties are currently for sale- this is some 47 per cent less than in 2008. 

So buoyant is the market that prices rose 0.3 per cent across England and Wales over the last month, which is the highest rise observed by Home in January since the onset of the financial crisis.

Overall, the current mix-adjusted average asking price for England and Wales is now 8.2 per cent higher than it was in January 2015. 

The typical time on market is 117 days across England and Wales: nine days less than in January 2015.

Prices have risen in all regions except for the East, Scotland, Wales and Yorkshire during the last month.

  • Simon Shinerock

    I seem to remember that in August 1988 there were well over 200 thousand sales in that single month and the average during the late 80s was in the mid 100 thousands. What we are seeing now is the result of an ever tightening noose in the form of inadequate supply. The likelihood is that this will not change for the foreseeable future so anyone waiting for 'the crash' may have to wait a long time.

  • Peter Hendry

    Unless something 'fundamental' changes I would agree with Simon. It might be worth clarifying however, that the term 'supply' does not mean the total number of houses in the built environment but instead should mean the actual number of properties being offered on the market as available to purchase (at current but realistic prices of course).

    To resolve this issue there would need to be a fundamental improvement in market technology. There is no other practical solution.

  • Fake Agent

    Don't worry, the government are building 13,000 "affordable" new starter homes. That will solve everything. Never fear, Brandon Lewis is here...somewhere...well, no, actually, he hasn't been seen in a while. Anyone know where he's got to?

  • Anna  Dickson

    Of course sellers are able to charge an inflated price with demand at such an out-of-control level, and this looks as if it will only increase further.

    How many of these 13,000 homes do you think will actually be built though Fake Agent? I'm a little sceptical if I'm honest.

  • Brit Sixteen Sixty Four

    I think buy to let sell offs and stamp duty changes on second properties will increase supply post April. On top of that in London we have have huge amounts of new builds being built for foreign investors who are pulling out with the global slowdown in far east.

    Asad Riaz

    Yes, certainly think that stamp duty changes will impact the supply of properties.

    It's interesting examining the figures, back in 2007 Labour proposed that 240,000 new homes must be built each year to keep up with demand, but it's staggering that year-on-year the UK have failed to get anywhere near this number, and then claim that building these 13,000 new homes will solve it all.

     
  • Simon Shinerock

    Oh yes, there is a mega slowdown at the top end in London, as that accounts for 0% of the U.K. market (or there abouts) it's irrelevant. After April no investors will sell because the cost of replacement will gave gone up and there is nothing else to do with their money, it would be funny if it weren't so sad

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