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Gloucestershire Business News

Property shortage as buying boom continues

The housing market is facing an acute shortage of homes for sale as the supply of properties fails to keep pace with the current buying frenzy, reports Zoopla in its latest UK House Price Index.

During the past year, one in 20 homes changed hands driven by the stamp duty holiday and the pandemic effect of the search for more living space.

Completed sales jumped by 25 per cent in the 12 months to June 2021, compared to the same period in 2019, according to HMRC data.

The mismatch between supply and demand has created a sellers' market with three- and four-bedroom family homes most in demand which in turn is pushing up prices.

The average UK home seeing its value increase by six per cent in the year to the end of July, Zoopla revealed.

Properties are also selling more quickly taking an average of just 26 days to go under offer, down from 49 days in 2019, as more buyers compete for a smaller number of properties.

Demand remains strong with the number of people looking to purchase a home 20.5 per cent higher than the average for 2020.

Zoopla suggests that first-time buyers have been increasingly active in 2021, supported by lenders who have become more willing to offer mortgages to people with smaller deposits.

The good news is that first-time buyers will continue to be exempt from stamp duty on the first £300,000 of a property purchase costing up to £500,000, even once the stamp duty holiday ends.

Enzo Mora, director of Gloucestershire-based The Mortgage Brain, said: "In a sellers' market it's crucial to get your mortgage sorted in principle wherever you are on the ladder before house hunting begins. This means you will be at the front of the queue and in the best position to make a serious offer.

"We strongly urge sellers and buyers to sort their finances first. Our mortgage teams have been working flat out to get clients mortgage ready and with interest rates remaining low we're expecting strong demand for mortgages as we head into the autumn."

READ MORE: Gloucester business sees sales skyrocket during pandemic 

To find out more about The Mortgage Brain, visit www.themortgagebrain.net or call 0333 340 8888.

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