Hype about a housing market boom is misplaced, because analysts are ignoring regional differences in vendor behaviour.
Doug Shephard, of the property search engine Home, said that the overall current volume of vendors entering the market, at around 100,000 per month across the UK, is less than half of what it was during the property year boom of 2007.
However, while supply is down 19% and asking prices up 10.5% year on year in London, in the north-east, supply is up 16% with asking prices stagnant.
Shephard said that home owners in areas where prices are growing are reluctant to sell. Concerns about the lack of suitable properties to buy are also discouraging many would-be vendors.
However, Shephard said that the increase in the number of vendors in poorly performing northern regions was an “alarming trend”, creating a buyers’ market and putting downward pressure on prices.
Shephard said: “These regional supply dynamics suggest that the bipolar nature of the UK property market is only going to get worse. Starved of new and resale stock, pricing in the London and south-east property markets looks set to go ballistic.
“Prices in the capital are already increasing too fast and further restrictions in supply can only serve to make matters worse. Meanwhile, increases in supply in the sluggish northern markets can only exacerbate their problems of slow sales and price stagnation.”
Separately, Sequence said today that buyer demand is up 58% in London compared with a year ago. The agents said that new buyer registrations are rising over three times quicker than supply.
Comments
YOU rattling ME??
Oh I don't think so, Sir,
Another example of your belief in your own importance in the grand scale of affairs.
I repeat - you really, REALLY, need to get over yourself!
Or one day, you're gonna blow!!
@PeeBee. Good morning. Whatever I've said has clearly rattled you!
Might we be able to discuss, with a view to resolving the issues you appear to find so concerning?
" For avoidance of any doubt I wish to record that my mission has been accomplished.
I have had many hundreds of estate agents reading and considering these proposals - well over a thousand now."
You REALLY are a piece of work, aren't you? You have "accomplished" BOT ALL, Mr RR - except in your own mind, where you are the centre of your own little universe.
The 'hundreds' you refer to may or may as easily not be Estate Agents. And I am sorry to drop this on you, but they are NOT READING your MDT. They clicked on the story. I have little or no doubt that as soon as they saw your blatant attempt to hijack YET ANOTHER storyline, they would have clicked straight off.
"The primary responder appears to have been you, preferring to peddle negativity and aiming to justify your colleagues current actions in an effort to maintain the status quo."
Peddling negativity? To WHAT? Oh... if you are meaning negativity to your ridiculous rantlets and 'cures' for the poorly housing market, then for once then I have to give you credit for being absolutely spot on. Except it's not exactly 'negativity' - I would suggest a more accurate description of my actions be that of 'clearing the smoke and breaking the mirrors'.
I do not need to justify the actions of ANYONE, including my own, who work within the bounds of The Estate Agents Act 1979, Sir. It worries me greatly that you seem to have such a fundamental misunderstanding of the industry that you claim to be an 'expert' in, and that the 'solutions' you suggest as 'the way forward' could only be adopted if the above legislation - which is primarily there to protect homesellers and buyers from unprofessional and shady practices - be discarded. Interesting approach. Wonder why the industry's professional bodies and AT LEAST TWO successive Governments that you admit to haven't fallen over themselves to ask you for the blueprint...
"Whether you have their approbation or not I cannot say but to you, your followers and cohorts, I have only one word to utter in response "blinkered"."
Sorry to disappoint you, but I have NO followers and NO cohorts. Just like you.
You need to REALISE something, Sir - you pretty much only have an audience of one these days. I am the only eejit who actually gives you any attention whatsoever - the solitary berk rising to your ridiculous suggestions. The rest of the population clearly have far more sense than rise to your putrid bait - and I wish I had a share of it.
The last two paragraphs of your post confirm everything I have ever said about you - but allow me to provide a one-sentence precis.
You REALLY need to get over yourself.
For avoidance of any doubt I wish to record that my mission has been accomplished.
I have had many hundreds of estate agents reading and considering these proposals - well over a thousand now.
Very few have seen fit, either to object, comment, provide relevant criticism, or even enter into meaningful discussion.
@ PeeBee: The primary responder appears to have been you, preferring to peddle negativity and aiming to justify your colleagues current actions in an effort to maintain the status quo. Whether you have their approbation or not I cannot say but to you, your followers and cohorts, I have only one word to utter in response "blinkered".
Instead, my clever idea of substituting selling (agency) contracts with 'moving contracts', where each estate agent engaged would be there to facilitate a vendor's move to their next property, would bring complete satisfaction to all those in the throes of moving house. This would get the whole UK housing market operating smoothly once again; no matter what political colour it may be viewed through at the time.
I therefore wholeheartedly recommend this for very detailed consideration by all those involved in the house-marketing process - as well as all political parties.
Peter Hendry, Consultant in Housing Valuation at Property Match (UK).
(There's additional information about these theories for anyone interested at The Property Match (UK) blog.)
Mr RR...
"You, whoever you are behind your shady mask..." Me 'shady'? REALLY?? How's about we have an EAT poll as to who - ME or YOU - the shady character is here?
"...seem to be fixated on espousing negativity and seem frightened to consider progress for your profession in a constructive direction"
You know NOTHING. I WELCOME progress. I work toward it every minute of every day.
WHEN the LAW is changed as to HOW I act; and FOR WHO for who I act, then I shall act accordingly.
In the meantime, you continue dreaming up your ridiculous ideas for the world to blow holes in - and I will continue acting... COMPLETELY LAWFULLY, please note... in the course of my job.
Oh dear RR, you need to get it, no one cares a jot what you rant on about, you have never had one word of support, even the HPC nutters get support.
@ PeeBee
You, whoever you are behind your shady mask, seem to be fixated on espousing negativity and seem frightened to consider progress for your profession in a constructive direction. This is sad.
"Who gets this?"
Only you, Mr RR. ONLY you.
The rest of the population get on with living in the real world. WE have no time to spend in La-La Land where you sit on your throne.
But... you seem to like it there, all alone.
Best place for you, in REALITY...
This problem clearly still needs highlighting.
True, restrictions in supply can only serve to make matters worse but if prices become too high, demand will drop off to compensate, so fewer sales will occur.
It's a simple balance.
All that's needed is for those selling to acquire a system for selling, that maximises the price being obtained depending upon the economic landscape in place at the time.
That is what I have been pointing out, by suggesting that a new way to market houses needs introducing, using moving contracts as opposed to merely using one-trick selling contracts as at present.
Who gets this?
Well said Doug. Whilst some areas are undoubtedly seeing a far more buoyant market, many other areas are seeing asking prices remaining still too high with demand struggling unless the property is priced below £250,000. Some sectors of the market over £500,000 are seeing little more than 6% to 12% of available properties actually under offer thus hi-lighting the over supply of over priced property and the unwillingness of sellers and some agents to actually accept the reality of a bi-polar market!