November saw a further rise in the average price of a home throughout the UK, according to the RICS UK Residential Market Survey, with lack of supply seen as the cause of this.
The survey for last month also showed that November was the eighth month in a row in which estate agents reported the number of new properties for sale dropping. This supports the idea that spiralling prices are being caused by a chronic shortage of homes to buy, with this leading prospective homebuyers to compete against one another for what is available.
Furthermore, 71% of those that took part in the survey indicated that this competition had made it a sellers’ market and had led to property prices going up. This is the same percentage that said this during October, showing that shortage of housing supply is leading to consistent increases in prices.
There was a rise in the number of people making enquiries about buying a home last month, reaching a +13% net balance, compared to +11% for October. When it comes to actual complete purchases however, the net balance dropped by –9% – marking the fifth successive monthly decline.
Speaking to Financial Reporter, Simon Rubinsohn from RICS said that housing supply was becoming a huge issue, adding:
“Unless this trend is reversed soon, transaction levels may flatline in 2022 with limited choice proving more significant than any shift in the interest rate environment for new buyers.”
Advisors with CeMAP training can help buyers with this, but more house building is essential.