Homes shortage preventing Brits from buying property

A shortage of homes is making it harder for people to get onto the property ladder, according to new findings.

Research published by the National Association of Estate Agents (NAEA) showed that one-in-five buyers are paying more than the asking price to secure their dream property.

The May Housing Market Report revealed that the supply of houses for sale has dropped by 27 per cent since this time last year.

Higher property prices and a constraint on supply are two of the biggest factors that have forced buyers to increase their asking price to beat off competition and secure their property.

Some 19 per cent of properties sold for more than the advertised price last month. Just seven per cent of homes sold for above the asking price in September 2013.

Less than half (46 per cent) of sellers accepted a lower than asking price, the smallest percentage ever recorded since the data was collected in September 2013, when 71 per cent of sellers sold at a lower cost.

Commenting on the findings, Mark Hayward, managing director of the NAEA, said: "The number of house hunters is substantially higher than the number of properties on the market, so competition is always going to be rife. Unfortunately the lack of housing problem is not going to go away anytime soon.

"We have seen a shortage in the number of new builds in the last five or so years, and those who are currently in a property and looking to move may be put off by the cost of stamp duty. "

This shortage in available homes combined with the higher cost of buying is resulting in increasing numbers of Brits choosing to rent homes instead.

The report coincides with previous findings by Nationwide that showed that house prices rose by 0.7 per cent in May 2014 and were 11.1 per cent higher than May 2013.

Published 24th June, 2014

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