Housing market supply falling behind demand

August 28, 2020 by Brendan O'Neill

Property Market

The latest research into the housing market in the UK indicates that there is a sizeable gap between levels of demand and supply as the country starts to move further out of lockdown.

Legal and General Mortgage Club research suggests that demand among homebuyers built up during the months of lockdown, but that many of those desperate to buy a home are set to be frustrated due to a shortage of homeowners prepared to put their properties on the market.

Legal and General surveyed UK property owners and buyers extensively and found that 61% of homeowners were definite about not putting their homes up for sale before the end of the year. On the other hand, when it comes to those looking to buy, 53% of participants were keen to do so this year.

The number of homeowners who are sure about wanting to sell their properties this year is only 4%, according to this survey, indicating a huge gap between demand and supply.
Speaking to Mortgage Strategy, Kevin Roberts from Legal and General said:

“From first-time buyers to landlords, we are seeing unprecedented demand from consumers post-lockdown eager to move ahead with home moves and buy-to-let purchases.”

He added that the gap between the supply of properties and the demand could see supply dry up completely, leaving buyers struggling to find the home that they are looking for.

This is concerning news for mortgage advisors with a CeMAP qualification and demonstrates again the need for a UK-wide house building programme.