A report from the Halifax has indicated that the number of properties for sale on the market is at its lowest level for a number of years.
The chronic shortage of homes for sale, married with surging demand from buyers, has seen prices soar at a greater rate than wages. Property prices increased by 8.6% in the year to May, meaning the average cost of a home is now £196,067.
However, prices did slow in May, albeit by 0.1%, in comparison to April.
Housing economist at the Halifax, Martin Ellis, suggested that, ‘the imbalance between supply and demand is likely to continue to push up house prices over the coming months. Looking further ahead, the increasingly level of house prices in relation to earnings is expected to dampen house price growth.’
Homes for sale at lowest rate for years
Jonathan Samuels, chief executive of Dragonfly Property Finance, agreed with Mr Ellis’ comments. Samuels stated that, ‘unless supply improves materially, it is hard to see how prices will not continue to rise throughout 2015, albeit at a more modern pace relative to last year.’
These figures from the Halifax come hot on the heels of data released yesterday from the Nationwide, which indicated that 38% of properties were sold to cash purchasers during the first quarter of 2015.