Housing supply gets halved in 10 years

uk-price-leapThe supply of available houses to buy in the UK has almost got halved in 10 years and first time buyers are still struggling to get into the housing market, according to estate agents. The average number of properties available in December 2015 fell to 37 properties, shows the latest housing market report from the National Association of Estate Agents. Low supply has affected the number of sales in December, as NAEA members reported there was an average of seven sales which was the lowest recorded in 2015.

Mark Hayward, NAEA managing director says: “While there was expectation for supply and demand to be seasonally low in last December, 2015 overall doesn’t give a positive outcome for the housing market. Supply of housing is half of what it was 10 years ago. However the number of home buyers has been gradually increasing. The issue of lack of supply needs to be solved, but it isn’t going to be done anytime soon. As we wait to see new homes being built and while we wait, house prices continue to rise. There is some possibility for first time buyers however, once the new tax rate increase in April is in place we may see less investment from investors, which may lessen competition for first time buyers.”

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