A new report suggests that the number of properties available to purchase per estate agent branch dipped to an eleven-year low during August.
Data from the latest report by the National Association of Estate Agents shows that supply of available housing dropped by one-third in the last month, with 38 properties available, in comparison to 55 in July.
This was the lowest level of housing supply recorded since January 2004, when 38 properties were also available per branch.
August also saw a fall in the number of house hunters, with an average of 408 house-hunters registered per member-branch, in comparison to 462 in July. This was a drop of 12%.
The number of completions in August rose by one to hit an average of ten properties per branch. However, sales made to first-time buyers dipped to their lowest level since July last year. 20% of sales were made to first-time buyers in August, down from 23% in July and 24% in June. This indicates that movement I the market is happening further up the property ladder, with second and third time movers cranking up sales.
Housing supply falls to 11 year low
‘We’ve been banging the drum about the dwindling supply of housing for a while and this month’s report reiterates what we’ve been saying-there simply aren’t enough houses to match demand and we’re reaching crisis point,’ said Mark Hayward, managing director of the National Association of Estate Agents.
‘There are now eleven house hunters fighting after every available house which isn’t sustainable. First time buyers are finding themselves being squeezed out of the competition, which of course means it’s taking young buyers longer to get their foot on the first step of the ladder, which will in turn increase pressure on the rental market,’ Mr Hayward concluded.