Why is property stock SO LOW?

Why is property stock SO LOW?

"Housing stock shortage ‘is the worst I’ve seen in thirty years" says Property Industry Eye.

Finding the perfect property is always a challenge as a homebuyer. This becomes even more difficult when there are limited properties on the market! Currently, the property market is showing demand is high and supply is low, causing not only a property shortage in Ceredigion, but also the whole of the UK.

Right now, there are just 2.2 to 2.4 months of property stock left to sell across England and Wales.

Why is Property Stock Running Out?


So, why is there more demand for property than supply at the moment?
There are a number of factors contributing to this problem:

1) Stamp duty holiday
Of course, the bid to boost the housing market by extending the stamp duty holiday has had the desired effect of encouraging housing purchases. So why is there such an imbalance between buyers and sellers? 

2) A move away from cities
As we can see, there is a pocket of available property in London. As people choose to move away from inner London due to less reliance on location-specific work and potential concerns about living in a crowded area, this places extra demand on more rural areas.

3) Family friction
Divorce rates are increasing around the world, fuelled by pandemic stress and extended time in close proximity. Split families force a need for more housing.

4) An end to the mortgage crunch for first-time buyers
Low deposit deals are back on the table, allowing first-time buyers with small deposits on to the property ladder for the first time since the pandemic took hold.

These are just some of the key factors at play, and there are likely many more having an impact on the current UK property shortage. The issue in itself has the potential to cause a downward spiral, discouraging homeowners from listing their property because there’s little of interest on the market for them to move to.

“It’s a mix of locals moving, people buying holiday homes and those relocating completely, which is leading to more out-of-town buyers than we would normally see. Those who are choosing to relocate are, understandably, looking for a home right by the sea, which is pushing up demand even more for those homes with the all-coveted sea view."

Why not see if your property has gone UP in value? The sold prices in Ceredigion have gone up 10%!
You could be living in a property that everyone wants! Enquire now.

Sales@alexanders-online.co.uk
01970 636 000

Take care,

The Alexanders Team.


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